1

CONSUMER
BEHAVIOUR:
UNIT I
INTRODUCTION
CONCEPTS OF CONSUMER BEHAVIOUR:
Definition:
Consumer behaviour is defined, as a behaviour that consumers display in
searching for, purchasing, using, evaluating and disposing of products and services that
they expect will satisfy their needs.
- Schiffman
Observable activities chosen to maximize satisfaction through attainment of
economic goods and services such as choice of retail outlet, preference of particular
brands and so on.
- ictionary of mar!eting and advertising
"he decision process and physical activity individual engage in when evaluating,
ac#uiring, using or disposing of goods and services.
- $oudon % ella &itta
Types of consue!s: Types of consue!s:
'ersonal consumers
Organizational consumers
"#$t is consue! %e#$&iou!'
Obtaining - purchase( receipt of product

Consuming - how, where, when and under what circumstances use product

isposing - get rid
Consue! %e#$&iou! !o(es:
Initi$to!: )ndividual who determines that some needs or want is not being met
and authorizes to rectify the situation.
Inf(uence!: )ndividual who intentionally or unintentionally influence the
purchase decision.
Buye!: )ndividual who actually ma!e the purchase transaction.
Use!: )ndividual who directly consume the product.
Ipo!t$nce of stu)yin* consue! %e#$&iou!:
Consumer is the !ing.
Consumers do not always act or react as the theory suggest.
Consumer preferences are changing and become highly diversified.
*
CONSUMER
BEHAVIOUR:
Consumer disli!es identical product and prefer differential products.
Segmenting the mar!et to cater the special needs of consumers.
+apid introduction of new products with technological advancement
"o sell products that might not sell easily.
O
Mo)e( of consue! %e#$&iou!:
,eedbac! to consumer
,eedbac! to environment ,eedbac! to environment
Met#o)s of stu)yin* consue! %e#$&iou!: Met#o)s of stu)yin* consue! %e#$&iou!:
Observational approach
)n home observation
)nterviews and surveys
,ocus group
,ield experimentation
Consumption research products
P!incip(es of consue! %e#$&iou!: P!incip(es of consue! %e#$&iou!:
Consumer is sovereign
Consumer is global
Consumers are different
Consumer has rights
APPROACHES TO THE STUD+ OF
CONSUMER BEHAVIOUR:
ifferent approaches to studying consumer behaviour are-
.anagerial approach
/olistic approach
&alanced approach
M$n$*e!i$( $pp!o$c#:
)ndividual
Consumer
0nvironmental
)nfluence
Consumer
ecision .a!ing
Consumer
+esponse
1
CONSUMER
BEHAVIOUR:
- )t is more micro and cognitive in nature.
- .icro- emphasizes the individual consumer li!e his attitude, perception, life
style, etc.
- Cognitive- emphasizes the thought process of individual consumers and factors
in influencing their decision.
- .ar!eters are interested in this approach because all mar!eting strategy is to
satisfy the individual consumers need.
- +is!s in managerial approach-
Overemphasizes the rationality of consumers
Overloo! the dynamics of environmental factors independent of
individual
,ocus is on purchase rather than consumption
Ho(istic $pp!o$c#:
- )t is more macro in nature.
- )t focuses on consumption experience rather than purchasing process.
- )t helps in understanding the environmental context of consumer action.
- +is!s in holistic approach are-
2o emphasize on purchase decision.
2o understanding of cognitive process, which is necessary for the
mar!eter to meet consumer needs.
B$($nce) $pp!o$c#:
)n balanced approach both the managerial view and holistic view are ta!en by
eliminating the drawbac!s.
APP,ICATION OF CONSUMER BEHAVIOUR -NO",ED.E IN
MAR-ETIN. DECISION:
3nderstanding of consumer behaviour is essential for the long run success of any
mar!eting program.
Some of mar!eting activities were consumer behaviour !nowledge is important
are-
.ar!et-opportunity analysis
"arget mar!et selection
.ar!eting mix determination
M$!/et oppo!tunity $n$(ysis:
- )t involves analyzing the mar!et to identify unsatisfied needs and wants.
- "he analysis begins with a study of general mar!et trends such as consumers
lifestyle and income levels which suggests unsatisfied needs and wants.
T$!*et $!/et se(ection:
- .ar!et opportunity analysis results in the selection of target mar!et ie distinct
groupings of consumers who have uni#ue wants and needs.
4
CONSUMER
BEHAVIOUR:
- 0g- Colgate- 'almolive company segment consumers according to their life
style pattern and personalities to identify a uni#ue group of consumers for a certain type
of deodorant soap.
M$!/et0i1 )ete!in$tion:
.ar!eting mix variables are-
'roduct
'rice
'lace
'romotion
CONSUMERS DONT ACT A
UNIT II
CONSUMER AS AN INDIVIDUA,
CONSUMER NEEDS AND MOTIVES
CONSUMER NEEDS
Nee):
&asic feel of desire
"$nt:
"he means of satisfying the need
Types of nee)s:
o &iogenic need.
o 'hysical need.
o 'sycogenic need.
o 3tilitarian or hedonic need
&iogenic need-
"he need for air, water and sunlight .
'hysical need-
"he need for food, shelter and clothing.
'sycogenic need-
5
CONSUMER
BEHAVIOUR:
"he needs ac#uired in the process of becoming a member of a particular
society or culture.
"his include need for affection, power, self-esteem, etc.
0g- )n )ndia need to accumulate wealth for daughter6s marriage shows
attachment and affection.
3tilitarian or /edonic 2eed-
"his need satisfies consumer6s dreams and builds up self confidence.
"his need implies that consumer will emphasize the tangible #uality of the
product.
0g- 2eed for efficient washing powder.
2eed to own a car.
Hie!$!c#y of nee)s:
r.7braham .aslow , a clinical psychologist formulated the theory of
human needs.
"his theory identifies five basic level of human needs ran!ed in the order
of importance.
)ndividual see! to satisfy lower-level of needs before higher-level of needs
emerge.
"he hierarchy of needs are-
o 'hysiological needs.
o Safety and security needs.
o Social needs.
o 0go needs.
o Self-actualization needs.
'hysiological needs-
&asic level of human needs.
"his need is re#uired to sustain biological life.
"his need is also called as biogenic need or physical need.
7ds for products and services that promote physical health is an appeal to
this level of the need hierarchy.
0g- need for food, water, shelter, clothing, etc.
Safety and security needs-
Once the first level is satisfied this need become the driving force for
human behavior.
,ocus on tomorrow6s life.
0g- savings account, insurance policies, education, etc.
Social needs-
"his level satisfies the need for human relationship.
7ds of personal care products appeal to this need.
0g- 2eed for love, affection, belonging and acceptance.
0go needs-
8
CONSUMER
BEHAVIOUR:
0ither inward or outward oriented.
)nwardly directed ego needs reflects need for self-acceptance, self-esteem,
success, etc.
Outwardly directed 0go needs reflects need for prestige, reputation, status,
etc.
Self-actualization needs-
"his need refers to individual desire to fulfill his or her potential or fully
exploiting ones potential.
Only few satisfy this need.
0g- 'layer wor!ing single-mindedly for many years to excel in his sports.
E&$(u$tion $n) $!/etin* $pp(ic$tion:
)t has received wide acceptance in various social discipline.
'roblems-
)t cannot be tested empirically.
2o way to measure precisely how satisfied one level of need before the
next higher level become operative.
3seful tool to the mar!eter as well.
.ar!eting application-
/elps mar!eter to focus the advertisement appeal to the need level shared
by large segment.
,acilitate product positioning and repositioning.
T!io of nee)s:
2eed for affiliation-
)t is a social motive and it influences consumer behaviour.
&ased on the desire for friendship,for acceptance,etc.
'eople with high affiliation needs are socially dependent on others.
2eed for power-
"his relate to individual desire to control his or her environment, to
control other persons,etc.
)t is related to ego needs.
2eed for achievement-
'eople with high achievement need regard personal accomplishment as an
end in itself.
"hey are more self-confident and ris!-ta!ing.
)t is related to both ego need and self-actualization need.
9
CONSUMER
BEHAVIOUR:
2o)ue034
MOTIVATION
Definition:
.otivation is a driving force within an individual that impels them to action.
Mo)e( of oti&$tion:
"his model portrays motivation as a state of need induced tension that drives the
individual to engage in behaviour that he or she believes will satisfy the need and thus
reduce the tension.
$earning
$earning
2eeds wants,
and desires
2eeds wants,
and desires "ension
"ension
:oal or
need
fulfill-
ment
:oal or
need
fulfill-
ment
rive
rive
&ehavior
&ehavior
Cognitiv
e
processes
Cognitiv
e
processes
"ension
reduction
"ension
reduction
;
CONSUMER
BEHAVIOUR:
Ro(e o! functions of oti&es:
"he role of motive is to arouse and direct the behaviour of consumers. Some of
the functions of motives are-
efining basic striving-
.otives influence consumers to develop and identify their basic striving
which includes general goals such as safety, affiliation, etc which
consumer see!s to achieve.
)dentifying goal ob<ects-
Consumers view product or service as a mean to satisfy their motives.
"he product is the goal to consumers.
)nfluencing choice criteria-
.otives guide consumers to buy certain products and not the other.
)nfluencing consumer perception and learning-
.otives influences consumer perception and learning process.
Types of oti&es:
"he types are-
Strong vs. wea! motive
Conscious vs. unconscious motive
'ositive vs. negative motive
+ational vs. emotional motive
A!ous$( of oti&es:
,our arousal of motives are-
'hysiological arousal
0motional arousal
Cognitive arousal
0nvironmental arousal
'hysiological arousal-
=
CONSUMER
BEHAVIOUR:
'hysiological cues are involuntary and it cause uncomfortable tension.
0g- stomach contraction will trigger awareness of a hunger need.
0motional arousal-
7utistic thin!ing>aydreaming? arouse emotional need and drive them
into goal oriented behaiour.
0g- fear of examination drives the student to sit and study.
Cognitive arousal-
+andom thought can lead to cognitive awareness of needs.
0g- ads that provide reminder of home ma!e one feel to spea! with
parents.
0nvironmental arousal-
Certain cues in the environment arouse a set of needs.
0g- 0nd of school day will arouse a need for food.
Dyn$ics of oti&$tion:
2eeds are never fully satisfied
2ew needs emerges as old needs are satisfied
Success and failure influence goals
Substitute goal
,rustration
Me$su!eent of oti&es:
.otives are hypothetical constructs and are not tangibly observed.
2o single measurement exists so combination of various #ualitative
research techni#ues is used.
.otivational research includes all type of measures into human motives.
.otivational research-
.otivational research is a #ualitative research designed to uncover the
consumers subconscious or hidden motivation.
Sigmund freud6s psychoanalytical theory of personality provide the
foundation for the development of motivational research.
$imitations-
"his research is #ualitative and experiment can be performed for
only small group so generalization of the result for large group will
sometimes give wrong result.
"his research generate more sub<ective opinion and it is difficult
for the mar!eter to understand consumer behaviour.
1@
CONSUMER
BEHAVIOUR:
PERSONA,IT+ AND CONSUMER BEHAVIOUR
Definition:
'ersonality is defined as the inner psychological characteristics that both
determine and reflect how a person responds to his or her environment.
N$tu!e of pe!son$(ity:
'ersonality reflects individual difference-
)ndividual personality are uni#ue combination of factors so no individuals
are ali!e.
.any individuals may be similar in terms of single personality
characteristic which help mar!eters to categorize consumers into different
groups and identify their mar!et segment.
'ersonality is consistent and enduring-
'ersonality has both consistency and endurance.
'ersonality can change-
Some ma<or life events and gradual maturing process changes the
personality.
T#eo!ies of pe!son$(ity:
'ersonality theories are-
,reudian theory.
2eo-,reudian theory.
"rait theory.
11
CONSUMER
BEHAVIOUR:
,reudian theory-
"his theory is proposed by Sigmund ,reuds6.
"his theory is built on the premises A3nconscious needs or drives are at
the heart of human motivationB.
/uman personality consist of 1 interacting systems-
o )d
o Superego
o 0go
)d-
Carehouse of primitive or instinctual needs for which individual see!s immediate
satisfaction. 0g- hunger, thirst, etc.
Superego-
)ndividual6s internal expression of society6s moral and ethical codes of conduct.
)t sees whether individual satisfies the need in the socially acceptable fashion.
0go-
)ndividual6s conscious control that balances the demands of the id and superego
2eo-,reudian personality theory-
Social relationships are fundamental to the formation and development of
personality.
"hree personality group of individuals are-
o Compliant individuals- those who move towards others.
o 7ggressive individuals- those who move against others.
o etached individuals- those who move away from others.
"rait "heory-
"his theory is a #uantitative measure.
'ersonality theory with a focus on psychological characteristics
"rait - any distinguishing, relatively enduring way in which one individual
differs from another
'ersonality is lin!ed to how consumers ma!e their choices or to
consumption of a broad product category - not a specific brand.
"he traits that are measured are-
1*
CONSUMER
BEHAVIOUR:
o Consumer innovativeness- how receptive a person is to a new
experience.
o Consumer materialism-- the degree of consumer attachment to a
wordly possession.
o Consumer ethnocentrism- the consumers li!elihood to accept or
re<ect foreign made products
Consue! inno&$ti&eness:
/ow receptive a person is to a new experience.
Consumer innovators are the first to try new product.
Some of the personality traits that differentiate innovators and
noninnovators.
Consumer innovativeness-
"he degree to which consumers are receptive to new products, new
services or new practices.
ogmatism-
7 personality trait that reflects the degree of rigidity a person displays
toward the unfamiliar and toward information that is contrary to his or her
own established beliefs.
/igh dogmatic-discomfort with new product.
$ow dogmatic-li!e to try new product.
Social character-
)t is a personality trait that range from inner-directedness to other-
directedness.
)nner-irected-
o Consumers who tend to rely on their own inner values
o .ore li!ely to be innovators
o "end to prefer ads that stress product features and benefits
Other-irected
-
o Consumers who tend to loo! to others for direction
o $ess li!ely to be innovators
o "end to prefer ads that feature social acceptance
2eed for uni#ueness-
Consumers who avoid appearing to conform to expectations or standards
of others.
Optimum stimulation level-
7 personality trait that measures the level or amount of novelty or
complexity that individuals see! in their personal experiences. /igh OS$
consumers tend to accept ris!y and novel products more readily than low
OS$ consumers.
Sensation see!ing-
11
CONSUMER
BEHAVIOUR:
7 personality trait characterized by the need for varied, novel, and
complex sensations and experience, and the willingness to ta!e physical
and social ris!s for the sa!e of such experience
Dariety-novelty see!ing-
7 personality trait similar to OS$, which measures a consumer6s degree to
variety see!ing
0xamples-
0xploratory 'urchase &ehavior
3se )nnovativeness
Dicarious 0xploration
Cognitive personality factors-
"wo cognitive personality traits are-
2eed for cognition.
Disualizers vs verbalizers.
2eed for cognition
o 7 person6s craving for en<oyment of thin!ing
o Consumers high in 2C are more li!ely to respond to ads rich in
product-related information
o Consumers low in 2C are more li!ely to be attracted to
bac!ground or peripheral aspects of an ad.
Disualizers versus verbalizers
o 7 person6s preference for information presented visually or
verbally
Consue! $te!i$(is:
"he degree of consumer attachment to a worldly possession.
"he extent to which a person is considered Amaterialistic.
Characteristic of materialistic people-
Dalue ac#uiring and showing-off possessions
7re particularly self-centered and selfish
See! lifestyles full of possessions
/ave many possessions that do not lead to greater happiness
,ixed consumption behavior
Consumers fixated on certain products or categories of products
Consumers have
o 7 deep interest in a particular ob<ect or product category
o 7 willingness to go to considerable lengths to secure items in the
category of interest.
o "he dedication of a considerable amount of discretionary time and
money to searching out the product
0xamples- stamp collectors, hobbyists
14
CONSUMER
BEHAVIOUR:
Compulsive consumption behavior
A7ddictedB or Aout-of-controlB consumers
Consumers who are compulsive buyers have an addictionE in some
respects, they are out of control and their actions may have damaging
conse#uences to them and to those around them
Consue! Et#nocent!is:
"he consumers li!elihood to accept or re<ect foreign made products
0thnocentric consumers feel it is wrong to purchase foreign-made products
"hey can be targeted by stressing nationalistic themes.
B!$n) Pe!son$(ity
'ersonality-li!e traits associated with brands.
0xamples-
Dolvo - safety
'erdue - freshness
2i!e - the athlete
&.C - performance
$evi6s 5@1 - dependable and rugged
&rand personification-
7ssociating a human-li!e character to a brand is called as brand
personification.
0g- dishwashing li#uid F demanding tas! master.
'roduct personality and gender-
7ssociating a product or brand with a gender.
0g- .r.coffee F masculine personality.
&ath soap F feminine personality.
'roduct personality and geography-
Certain product possess strong geographical association.
0g- salem <asmine.
'ersonality and color-
7ssociating product personality with color.
0g- coca-cola with red connotes excitement.
CONSUMER PERCEPTION
Definition:
"he process by which an individual selects, organizes, and interprets stimuli into a
meaningful and coherent picture of the world. G/ow we see the world around usH
15
CONSUMER
BEHAVIOUR:
E(eents of pe!ception:
"he elements of perception are-
Sensation
7bsolute threshold
ifferential threshold
Subliminal perception
Sensation-
o Sensation is the immediate and direct response of the sensory organs to
stimuli.
o Stimulus or stimuli is any unit of input to any of the senses. e.g.- ads,
brand name, etc.
o Sensory receptors are human organs li!e eyes, nose, ears, mouth and s!in.
o 7 perfectly unchanging environment provides little or no sensation at all.
0.g.- hon!ing horn is never noticed in heavy traffic.
7bsolute threshold-
o "he lowest level at which an individual can experience a sensation is
called the absolute threshold.
o "he point at which a person can detect a difference between something %
nothing.
o 0g- the distance at which the driver can note a specific billboard on a
highway.
o Sensory adaptation is getting used to certain sensations so advertisers try
to change their advertisement campaigns regularly.
ifferential threshold-
o "he minimal difference that can be detected between two similar stimuli is
called the differential threshold or <ust noticeable difference><.n.d?.
o Ceber6s law is the theory concerning the perceived differentiation
between similar stimuli of varying intensities.
o Ceber6s law states that Astronger the initial stimulus, the greater the
additional intensity needed for the second stimulus to be perceived as
differentB.
o 0g- )ncrease of *5 cent to a orange <uice worthI5.5@ is not
noticeable>below <.n.d? but same increase of *5 cent to a gasoline is
#uic!ly noticed by the consumer>above <.n.d?
o .ar!eting 7pplications of the J2
o -
o .ar!eters use this concept for the following reasons-
o 2egative change is not noticed by the consumers >below <.n.d?.eg-
reduction in product size or #uality
18
CONSUMER
BEHAVIOUR:
o 'roduct improvement is noticed by the consumers >above <.n.d?.eg-
improved pac!ing , lower price, etc.
Subliminal perception
-
o 'erception of very wea! or rapid stimuli received below the level of
conscious awareness is called as subliminal perception.
o 'erception of stimuli that are above the level of conscious awareness is
called as supraliminal perception or perception.
Mo)e( o! p!ocess of pe!ception:
Dyn$ics of pe!ception:
'erception is the result of two !inds of input-
'hysical stimuli from outside world
&ased on previous experience of individual
Stimulus are selected, organized % interpreted in line with their needs and
wants
.
"hree aspects of perception are-
'erceptual selection.
'erceptual organization.
'erceptual interpretation.
Pe!ceptu$( se(ection:
Consumers subconsciously exercise a great deal of selectivity in the
environment.
e.g- women in a supermar!et gets exposed to numerous stimuli but select
the item she needs and leave because she exercise selectivity in
perception.
Stimuli get selected depends on two ma<or factors-
Consumers6 previous experience
Consumers6 motives at that time
,actors for the stimulus to be perceived or selected-
2ature of the stimulus-
.ar!eting stimuli includes a number of variables that effect
perception li!e brand name, ad, pac!age design, etc.
"he variables should be attention-compelling to get selected.
0g- contract in pac!age, poster li!e ads in magazines, etc
0xpectations-
'eople see what they expect to see and they expect to see is based
on familiarity, previous experience and
expectations>preconditioned set?.
19
CONSUMER
BEHAVIOUR:
0g- when a person expect the movie to be terrifying will find it so.
.otives-
'eople tend to perceive the things they need or want.
Concepts Concerning Selective 'erception
-
Concepts Concerning Selective 'erception
are-
Selective 0xposure
Selective 7ttention
'erceptual efense
'erceptual &loc!ing
Selective 0xposure-
Consumers view messages that are pleasant and sympathetic and avoid
painful or threatening one.
Selective 7ttention-
Consumer exhibit high awareness for the stimuli that meet their needs
and lo awareness for stimuli that are irrelevant.
'erceptual efense-
Consumers subconsciously avoid stimuli that are psychologically
threatening.
'erceptual &loc!ing-
Consumers are bombarded with numerous stimuli and they bloc! from
conscious awareness.
Pe!ceptu$( o!*$ni5$tion:
'erceptual organization principles are based on gesalt psychology.
'eople do not experience the numerous stumili as separate instead they
perceive them as unified whole.
"he basic principles are-
,igure and ground
:rouping
Closure
,igure and ground-
Stimuli that contrast with their environment are more li!ely to be
noticed.
0g- $ufthansa ad featured a <et flying between two glass high-rise
building.
:rouping-
Consumers group the stimuli to form a unified picture and
facilitate their memory.
1;
CONSUMER
BEHAVIOUR:
:rouping is advantageous to the mar!eter to associate a meaning
for their product.
0g-ad for tea which shows a couple associate tea drin!ing with
romance and fine living.
Closure-
)ncomplete message are better remembered than complete ones.
Pe!ceptu$( inte!p!et$tion:
"he interpretation of stumili is uni#uely individual.
)nfluences of 'erceptual istortion-
o 'hysical 7ppearances
o Stereotypes
o ,irst )mpressions
o Jumping to Conclusions
o /alo 0ffect
'hysical 7ppearances-
'eople tend to attribute the #uality of the product based on the
#ualities of personality featuring in the ad.
7ttractive models are perceived to have more expertise regarding
enhancing product><ewelry? and problem solving products>product to
avoid dandruff?.
Stereotypes-
'eople tend to form their own picture in their mind for various stimuli.
,irst )mpressions-
,irst impression is ever lasting and it is the challenge for the mar!eter
to form so.
Jumping to Conclusions-
Consumer <ump to conclusion before examining all the complete
evidence.
0.g.- hearing the first line of ad consumer draw conclusion about
the product.
/alo 0ffect-
0valuation of multiple ob<ects on the basis of the evaluation of <ust one
dimension.
1=
CONSUMER
BEHAVIOUR:
>.odule 4?
2A4 CONSUMER ,EARNIN.:
efinition-
Consumer learning is the process by which individuals ac#uire the purchase and
consumption !nowledge and experience that they apply to future related behaviour.
)mportance of $earning-
.ar!eters must teach consumers-
Fwhere to buy
Fhow to use
Fhow to maintain
Fhow to dispose of products
"ypes or process of learning-
"wo types are-
)ntentional learning- ac#uired as a result of careful search.
)ncidental learning- ac#uired by accident without much effort.
0lements of $earning "heories-
.otivation
Cues
+esponse
+einforcement
$earning theories-
&ehavioural learning theories
Cognitive learning theories
&ehavioural learning theories-
)t is also referred as stimulus-response theory.
2ot concerned with the process of learning as they are with inputs and outputs of
learning.
&ehavioural theories are-
Classical conditioning.
)nstrumental or Operant conditioning.
Classical conditioning-
)van 'avlov ,a +ussian physiologist was first to propose this theory.
*@
CONSUMER
BEHAVIOUR:
7ccording to this theory AConditioned learning results when a stimulus is paired
with another stimulus that elicits a !nown response that serves to produce the same
response when used aloneB.
og experiment.
Cognitive 7ssociative $earning-
Classical conditioning is viewed as the learning of associations among events that
allows the organism to anticipate and represent its environment.
,rom this viewpoint, classical conditioning is not reflexive action, but rather the
ac#uisition of new !nowledge.
2eo-'avlovian Conditioning-
Creation of strong association between CS and 3S re#uires-
K,orward Conditioning >CS 'recedes 3S?
K+epeated 'airings of CS and 3S
K7 CS and 3S that $ogically &elong together
Uncon)itione) Stiu(us
.eat paste
Con)itione) Stiu(us
&ell
Con)itione) Stiu(us
&ell
Con)itione) Response
Salivation
AFTER REPEATED PAIRIN.S
*1
CONSUMER
BEHAVIOUR:
K7 CS that is 2ovel and 3nfamiliar
K7 3S that is &iologically or Symbolically Salient
Strategic 7pplications of Classical Conditioning-
+epetition
Stimulus :eneralization
Stimulus iscrimination
+epetition-
+epetition increase the strength of association between CS and 3S so reduce the
process of forgetting.
7dvertising wearout- though overlearning aids retention, at some point an
individual will become satiated to numerous exposure and both attention and retention
will decline. "his is !nown as advertising wearout.
"o avoid this mar!eters use cosmetic variation>change in bac!ground, print
types,etc? and substantive variation>change in the ad content?.
"hree hit theory- three exposures to an ad are necessary for the ad to be effective
.
Stimulus :eneralization-
"he inability to perceive differences between slightly dissimilar stimuli.
)mitative A.e-tooB product succeed in the mar!et place because of this.
Stimulus generalization helps mar!eter for-
'roduct line extension.
'roduct form extension.
'roduct category extension.
,amily branding.
$icensing.
Stimulus iscrimination-
"he ability to select a specific stimulus from among similar stimuli because of
perceived differences is called as stimulus discrimination
'ositioning- the image or position that the product or service holds in the mind of
consumer is critical for its success.
'roduct differentiation- this strategy is designed to distinguish a product or brand
from its competitors on the basis of attribute that is relevant and valuable to the
consumers.
)nstrumental or operant conditioning-
&.,.S!inner, 7merican psychologist developed this theory.
**
CONSUMER
BEHAVIOUR:
Consumers learn by means of trial and error process in which some purchase
behaviors result in more favorable outcomes >rewards? than other purchase behaviors.
7 favorable experience in instrumental is teaching the individual to repeat a
specific behavior.
)t is helpful in complex goal oriented activity.
+at !ept in s!inner box experiment.
+einforcement of behaviour-
'ositive +einforcement- 'ositive outcomes that strengthen the li!elihood of a
specific response
0xample- 7d showing beautiful hair as a reinforcement to buy shampoo
2egative +einforcement- 3npleasant or negative outcomes that serve to
encourage a specific behavior
0xample- 7d showing wrin!led s!in as reinforcement to buy s!in cream.
Strategic application of )nstrumental Conditioning-
Customer Satisfaction >+einforcement?
+einforcement Schedules
FShaping
.assed versus istributed $earning
Observational $earning Observational $earning
7 process by which individuals observe the behavior of others and conse#uences
of such behavior. 7lso !nown as modeling or vicarious learning.
0g- associating with dad and imitating the same behaviour.
Cognitive learning theory-
)t holds that the !ind of learning most characteristic of human beings is problem
solving, which enables individuals to gain some control over their environment
$earning involves complex mental processing of information.
)nformation processing-
)nformation processing is related to both consumers cognitive ability and
complexity of information to be processed.
7 cognitive theory of human learning patterned after computer information
processing focuses on how information is stored in human memory and how it is
retrieved.
)nformation processing and memory stores-
Sensor
y Store
Cor!in
g
.emor
y
>Short-
term
$ong
-term
Store
+ehearsal 0ncoding +etrieval
,orgottenE
lost
,orgottenE
lost
,orgottenE
unavailable
*1
CONSUMER
BEHAVIOUR:
+etention-
)nformation is stored in long-term memory
0pisodically- by the order in which it is ac#uired
Semantically- according to significant concepts.
.odels of cognitive learning-
)nvolvement theory-
)t is also called as split-brain theory and is developed from the research stream
called hemispheral lateralization.
*4
CONSUMER
BEHAVIOUR:
)nvolvement theory of consumer learning postulates that consumers engage in a
range of information processing activity from extensive to limited problem solving,
depending on the relevance of the purchase.
$eft hemisphere of the brain is responsible for cognitive activities and it is
rational, active and realistic.
+ight hemisphere of the brain is concerned with nonverbal, pictorial information
and it is emotional,implusive and intuitive
)ssues in )nvolvement "heory
)nvolvement "heory and .edia Strategy
)nvolvement "heory and Consumer +elevance
Central and 'eripheral +outes to 'ersuasion
.easures of )nvolvement
)nvolvement theory and media strategy-
+ight brain-
)ndividual passively process information in right brain with low involvement so
repetition produces a change in consumer behaviour >eg- product purchase? which intern
change the attitude of the consumer.
Consistent with classical conditioning.
.edia strategy- "D is a pictorial media so it is low inolvement media and
repeated exposure of "D commercial will aid in the purchase of the product.
$eft brain-
)nformation is actively processed in left brain with high involvement.
.edia strategy- 'rint media is high involvement media.
$imitation- both the brains wor! together to process information.
)nvolvement theory and consumer relevance-
/igh personal relevance of the product and high perceived ris! aids the consumer
for high-involvement purchase.0g-automobiles and dandruff shampoo.
$ow personal relevance of the product and low perceived ris! aids the consumer
for low-involvement purchase. eg- dish washing li#uid,etc.
/ighly involved consumers are narrow categorizers and uninvolved or low
involved consumers are called as broad categorizer.
Central and 'eripheral +outes to 'ersuasion
"his theory proposes that highly involved consumers are best reached through
ads that focus on the specific attributes of the product >the central route>left?? while
*5
CONSUMER
BEHAVIOUR:
uninvolved consumers can be attracted through peripheral advertising cues such as the
model or the setting >the peripheral route>right??.
0laboration $i!elihood .odel >0$.?- 0laboration $i!elihood .odel >0$.?-
"his theory suggests that a person6s level of involvement during message
processing is a critical factor in determining which route to persuasion is li!ely to be
effective.
Chen the product is high personally relevant
then involvement increases and consumer follow central route for information
processing.
Chen the product is low personally relevant
then involvement decreases and consumer follow peripheral route for information
processing.
)nvolvement
Central
+oute
'eripheral
+oute
Peripheral
Cues
Influence
Attitudes
Message
Arguments
Influence
Attitudes
/):/ $OC
*8
CONSUMER
BEHAVIOUR:
.easures of Consumer $earning
+ecognition and +ecall .easures
7ided and 3naided +ecall
Cognitive +esponses to 7dvertising
Copytesting .easures
7ttitudinal and &ehavioral .easures of &rand $oyalty
&rand loyalty
2B4 CONSUMER ATTITUDES
:
efinition-
7 learned predisposition to behave in a consistently favorable or unfavorable
manner with respect to a given ob<ect.
Chat are 7ttitudesL

"he attitude Aob<ectB
7ttitudes are a learned predisposition
7ttitudes have consistency
7ttitudes occur within a situation
Structural .odels of 7ttitudes-
"ricomponent 7ttitude .odel
.uliattribute 7ttitude .odel
"he "rying-to-Consume .odel
7ttitude-toward-the-7d .odel
"ricomponent 7ttitude .odel-
7ttitude consist of 1 components-
Cognitive component.
7ffective component.
Conative component.
*9
CONSUMER
BEHAVIOUR:
Cognitive Component-
"he !nowledge and perceptions that are ac#uired by a combination of direct
experience with the attitude ob<ect and related information from various sources.
"his !nowledge and perception ta!e the form of belief.
7ffective Component-
7 consumer6s emotions or feelings about a particular product or brand.
Conative Component
"he li!elihood or tendency that an individual will underta!e a specific action or
behave in a particular way with regard to the attitude ob<ect.
Cognitive component shows the consumer intension to buy.
.ultiattribute 7ttitude .odels- .ultiattribute 7ttitude .odels-
7ttitude models that examine the composition of consumer attitudes in terms of
selected product attributes or beliefs.
Some of the models are-
7ttitude-towards-ob<ect model.
7ttitude-towards-behaviour model.
"heory-of-reasoned-action model
7ttitude-toward-ob<ect model-
7ttitude towards a product is function of evaluation of product-specific beliefs or
attributes.
Consumers have favorable attitude towards brand which have ade#uate level of
attributes.
Consumers have unfavorable attitude towards brand which do not have ade#uate
level of attributes.
7ttitude-"oward-&ehavior .odel-
7 model that proposes that a consumer6s attitude toward a specific behavior is a
function of how strongly he or she believes that the action will lead to a specific outcome
>either favorable or unfavorable?.
*;
CONSUMER
BEHAVIOUR:
"heory of +easoned 7ction-
7 comprehensive theory of the interrelationship among attitudes, intentions, and
behavior.
"heory of "rying to Consume-
7n attitude theory designed to account for the many cases where the action or
outcome is not certain but instead reflects the consumer6s attempt to consume >or
purchase?.
7ttitude-"oward-the-7d .odel- 7ttitude-"oward-the-7d .odel-
7 model that proposes that a consumer forms various feelings >affects? and
<udgments >cognitions? as the result of exposure to an advertisement, which, in turn,
affect the consumer6s attitude toward the ad and attitude toward the brand.
*=
CONSUMER
BEHAVIOUR:
ATTITUDE FORMATION AND CHAN.E:
7ttitude formation is the process of shifting from having no attitude to having
some attitude about the given ob<ect.
)ssues in 7ttitude ,ormation
-
/ow attitudes are learned
Sources of influence on attitude formation
'ersonality factors
/ow attitudes are learned-
7ttitudes are learned by the following ways-
7ssociation-
Consumers purchase new product that are associated with the favourably !now
brand >ie the brand name towards which the consumer already have favourable attitude?.
0xperience-
7ttitudes follow purchase and consumption of a product.
Sometimes consumer try new brand and they form favourable attitude towards it
if it gives satisfactory experience.
)nformation-
Chen consumers try to satisfy their needs they form the attitude about the product
based on the information exposure of that product.
Sources of influence on attitude formation-
,our main sources are-
'ersonal experience.
)nfluence of family and friends.
irect mar!eting.
.ass media.
'ersonality factors-
'ersonality plays a role in attitude formation.
0g- individual with high need for cognition form positive attitude towards ad that
are rich with information and viceFversa.
Strategies of 7ttitude Change-
Changing the basic motivational function-
3tilitarian function.
0go-defensive function.
Dalue-expressive function.
1@
CONSUMER
BEHAVIOUR:
Mnowledge-expressive function.
7ssociating the product with special group, event or cause.
+esolving two conflicting attitudes.
7ltering components of multiattribute model.
Change brand belief
)mprove your brand rating
7dd attribute
Change the relative evaluation of attribute
Changing belief about competitors brand.
&ehavior precede or follow attitude formation-
Cognitive dissonance theory-
7ccording to cognitive dissonance theory Adiscomfort or dissonance occurs when
a consumer holds conflicting thoughts about a belief or an attitude ob<ectB.
Chen cognitive dissonance occurs after purchase it is called as post purchase
dissonance.
"actics to overcome post purchase dissonance-
+ationalize the decision being wise.
"ell friends the positive feature of the brand.
+eassure with existing satisfied owners.
7ttribution theory-
7 theory concerned with how people assign casualty to events and form or alter
their attitudes as an outcome of assessing their own or other people6s behavior.
)ssues in 7ttribution "heory
Self-perception "heory
,oot-)n-"he-oor "echni#ue
7ttributions "oward Others
7ttributions "oward "hings
/ow Ce "est Our 7ttributions
Self-perception "heory-
7 theory that suggests that consumers develop attitudes by reflecting on their own
behavior.
SE,F IMA.E:
0nduring image of themselves is called as self- image.
)ndividual6s self-image is uni#ue.
"here is a relationship between brand preference and consumers self-image.
Consumers try to enhance their self-image by selecting the product with image
that they believe will enhance their own self-image.
11
CONSUMER
BEHAVIOUR:
Minds of self-image-
7ctual self-image- how consumers see themselves.
)deal self-image- how consumers would li!e to see themselves.
Social self-image- how consumers feel others see them.
)deal social self-image- how consumers would li!e others to see them.
0xpected self-image- how consumers expect to see themselves at some specified
future time.
Dirtual personality-
Online individuals have an opportunity to try on different personalities
Dirtual personalities may result in different purchase behavior
COMMUNICATION AND PERSUATION:
efinition-
Communication is the transmission of a message from a sender to a receiver via a
medium or channel of transmission.
Components of communication-
Sender
+eceiver
.edium
.essage
,eedbac!
Communication process-
.essage initiator>source?.
"arget audience>receiver?.
,eedbac!>receivers response?.
esigning persuasive communication-
Communication strategy-
0stablish communication ob<ective. 0.g.- promoting sales of a product.
'erception, experience and memory are the factors of persuasion.
"arget audience-
)dentify appropriate audience and segment them to identify target group to
develop a particular message strategy.
.edia strategy-
'lacement of ad in the specific media is important for success of the message.
.essage strategy-
.essage is a thought, idea, image or attitude..
Sender should analyze the target audience personal characteristic li!e
education, needs, interest, etc to design a effective message.
1*
CONSUMER
BEHAVIOUR:
.essage structure and presentation-
+esonance-
)t is defined as a wordplay, often used to create double meaning.
0g- 'epsi6s slogan Ahit the beach toplessB next to 'epsi bottle cap lying in the
sand.
.essage framing-
'ositive .essage framing- stress the benefit of using specific product.
2egative .essage framing- stress the benefit to be lost of not using specific
product.
Comparative ad-
7d for a particular brand that says the advantage of their product and
disadvantage of the competitor6s product
Order effects-
'rimary effect
+ecency effect
+epetition-
+epetition aids in retention.
UNIT III2o)u(e 6 7 84
CONSUMERS IN THEIR SOCIA, AND CU,TURA, SETTIN.S
.ROUP D+NAMICS AND CONSUMER REFERENCE .ROUPS:
:roup-
:roup may be defined as two or more people who interact to accomplish either
individual or mutual goals.
Classification of groups-
.embership group- 7 membership group is one to which a person either belongs
or would #ualify for membership
Symbolic group- 7 symbolic group is one in which an individual is not li!ely to
receive membership despite acting li!e a member
+eference group-
+eference group is
any person or group that serves as a point of comparison >or reference? for an individual
in the formation of either general or specific values, attitudes, or behavior.
Classification of reference groups-
2ormative +eference :roups-
11
CONSUMER
BEHAVIOUR:
+eference groups that influence general or broadly defined values or
behaviour.
)t influence in the development of basic code of behaviour.
0g- a child6s normative reference group is its immediate family.
Comparative +eference :roups
-
+eference groups that serves as a benchmar! for specific or narrowly
defined behaviour or attitude.
)t influence in the expression of specific consumer attitude and behaviour.
0g- a persons normative reference group might be its neighboring family
whose life style appears to be admirable.
irect reference group-
"hose groups with which the individual interact on daily basis.
0g- family,close friends,etc.
)ndirect reference groups-
)ndividuals or groups with whom a person identifies but does not have
direct face-to-face contact.
0g- .ovie stars, sports heroes, political leaders, or "D personalities.
,actors that effect reference group influence-
"he degree of influence depends on nature of the individual, the product and the
specific social factor.
)nformation and experience-
'erson who have experience with the product and can obtain full information
about the product is not influenced by the reference group. On the other hand they see!
for advice and are influenced
.
Credibility, attractiveness and power of reference group-
7 reference group that is perceived as credible, attractive and powerful can
induce consumer attitude and behaviour change.
Conspicuousness of the product-
Disually conspicuous product- not influenced by reference group.
Derbally conspicuous product- influenced by the reference group.
Consumer conformity-
+eference group change the consumer attitude by encouraging conformity.
,actors 0ncouraging Conformity-
7 +eference :roup .ust ...
)nform or ma!e the individual aware of a specific product or brand
'rovide the individual with the opportunity to compare his or her own
thin!ing with the attitudes and behavior of the group
)nfluence the individual to adopt attitudes and behavior that are consistent
with the norms of the group
$egitimize the decision to use the same products as the group
14
CONSUMER
BEHAVIOUR:
Selected Consumer-+elated +eference :roups
-
,riendship groups. 0g- influence product such as snac! food, brand-name clothing, etc.
Shopping groups. 0g- influence product such as "upperware.
Cor! groups. 0g- influence product such as 7von.
Dirtual groups or communities
Consumer-action groups- youth development group, education group, etc.
+eference :roup 7ppeals-
Celebrities-
,amous personalities hold the viewers attention and promote the product.
0g- sharu!han promoting the navarathana talc powder.
"he expert-
7 person by his occupation is in uni#ue position to help the consumers
evaluate the product the advertisement promotes.
0g- ad for frying pan feature a chef explaining the product.
"he Acommon manB-
+eference group appeal that uses a testimonial of satisfied customers.
0g- slice-of-life advertisement li!e 7swini hair oil.
"he executive and employee spo!esperson-
"op executives feature as a spo!esperson in the ad.
0g- ,ran! 'erdue C0O of 'erdue chic!en feature in the ad.
"rade or spo!es-characters-
,amiliar cartoon character feature in the ad to promote the product.
0g-
Other reference group appeals
FAMI,+:
,amily is defined as two or more persons related by blood, marriage or adoption
who reside together.
/ouseholds-
/ouseholds
,amily /ouseholds-
.arried couple,
2uclear family,
0xtended family
2on-,amily /ouseholds-
3nmarried couples,
,riends( +oommates,
&oarders
15
CONSUMER
BEHAVIOUR:
"ypes of families-
.arried couple- a husband and a wife.
2uclear family- 7 husband and wife and one or more children.
0xtended family- a husband, wife, children and atleast one grandparent.
Single-parent family- one parent and atleast one child.
Consumer socialization-
"he process by which children ac#uire the s!ills, !nowledge, and attitudes
necessary to function as consumers.
Socialization begins in early childhood and extends throughout a persons
entire life.
.odel of socialization >slide?
Consumer socialization of children-
'readolescent children ac#uire their consumer behaviour norms through
observation of their parents and older siblings.
7dult consumer socialization-
Socialization is an on-going process.
7dolescent is influenced by the friends.
)ntergenerational socialization-
Some product loyalties or brand preferences is transferred from one generation to
another.
18
CONSUMER
BEHAVIOUR:
,unctions of a family-
0conomic well-being.
0motional support.
Suitable family lifestyles.
,amily decision ma!ing and consumption roles->slide?
,amily life cycle-
"raditional life cycle-
Stage )- &achelorhood
Stage ))- /oneymooners
Stage )))- 'arenthood
Stage )D- 'ostparenthood
Stage D- issolution
2ontraditional life cycle- >slide?
,amily households.
2on-,amily households.
2Mo)u(e 84
SUBCU,TURA, AND CONSUMER BEHAVIOUR:
efinition-
Subculture is a distinct cultural group that exists as an identifiable segment within
a larger, more complex society.
)mportance-
Subcultural analysis enables the mar!eters to focus on sizable and natural mar!et
segments.
Subculture is the relevant unit of analysis for mar!et research.
Categories of subculture-
Categories examples
2ationality )ndian, 7merican
+eligion /indu, .uslim
19
CONSUMER
BEHAVIOUR:
:eographic region 2ortheast, .idwest
+ace "amilian, !eralite
7ge senior citizen, teenager
:ender male, female
Occupation engineer, doctor
Social class lower, middle, upper
2ationality subculture-
2ationality is an important subcultural reference that guides in what customer
value and what they buy.
/ispanic subculture-
"raditional Characteristics of the /ispanic 7merican .ar!et-
'refer well-!nown brands.
&uy brands perceived to be more prestigious.
7re fashion conscious.
/istorically prefer to shop at smaller personal stores.
&uy brands advertised by their ethnic-group stores.
"end not to be impulsive buyers
.
)ncreasingly clipping and using cents-off coupons.
$i!ely to buy what their parent brought.
'refer fresh to frozen or prepared items.
+eligious Subcultures
*@@N organized religious groups in the 3.S.
'rimary organized faiths include-
'rotestant denominations
+oman Catholicism
Judaism
Consumers purchase decision are influenced by their religious identity.
Consumer &ehavior is directly affected by religion in terms of products that are
symbolically and ritualistically associated with the celebration of religious holidays.
0g- Christmas has become a gift-purchasing season of the year.
:eographic and +egional subculture-
)ndividuals have the sense of regional identification and they use this
identification to as a way of describing others.
.any regional differences exist in consumption behavior
Cesterners have a mug of blac! coffee
0asterners have a cup of coffee with mil! and sugar
Chite bread is preferred in the South and .idwest
+ye and whole wheat are preferred on the 0ast and Cest coasts.
1;
CONSUMER
BEHAVIOUR:
+acial subculture-
7frican-7merican Consumer
$argest racial minority in 3.S.
'urchasing power estimated at I59* billion
"hey are brand loyal.
'refer high fashions and name brands Aas a signal of their successB.
7sian-7merican Consumers
Currently about 1* million in size
0stimated at 11 million in *@@5
:ain of 54O since 1==@
7ge subculture-
,our groups under this are-
:eneration P
:eneration Q
&aby boomers
Older consumers
:eneration P-
&orn between 1=99 and 1==4E
7lso called echo boomers and millennium generation
1 Subsegments of :en P-
:en P 7dults>age 1=-*4?
:en P "eens>age 11-1;?
:en P "weens or !ids>age ;-1*?
7ppealing to generation P-
Shifts from "D viewing to using internet so they prefer internet shopping.
$ess li!ely to read newspaper.
2ot trust the stores their parents shop in.
:eneration Q- :eneration Q-
&orn between 1=85 and 1=9=E
'ost baby boomer segment >also referred to as Qers or busters?.
"hey wor! to live.
Job satisfaction is important than salary..
0xpect wor!-life flexibility.
7ppealing to generation Q-
'uchase product with good brand name.
"his group choose to be with their own rights so mar!eters focus on
fashion, music and language.
&aby &oomers &aby &oomers
-
1=
CONSUMER
BEHAVIOUR:
)ndividuals born between 1=48 and 1=84 >approximately 45O of the adult
population?.
"he largest age category alive today
,re#uently ma!e important consumer purchase decisions
)nclude a small subsegment of trend setting consumers >yuppies? who influence
consumer tastes of other age segments.
"hey are motivated consumers.
"hey en<oying buying for themselves and for their homes.
Seniors-
:enerally older consumers.
Consist of subcultures, including the 5@-plus mar!et and the Aelderly consumersB
mar!et.
"hree Senior Subsegments
K"he Poung-Old >85-94?
K"he Old >95-;4?
K"he Old-Old >;5 and older?
:ender as a subculture-
:ender roles and consumer behaviour-
.asculine traits- aggressiveness and competitiveness.
,eminine traits- neatness, tactfulness, gentleness and tal!ativeness.
Cor!ing woman-
Segmentation issues-
,our Segments of women are-
Stay-at-/ome /ousewives
'lan-to-Cor! /ousewives
Just-a-Job Cor!ing Comen
Career-Oriented Cor!ing Comen
Shopping pattern-
Cor!ing women spend less time in shopping.
"hey brand and store loyal.
"hey shop during evenings ad wee!-ends.
CROSS CU,TURA, CONSUMER BEHAVIOUR:
)mperative to be multinational-
7ll ma<or companies mar!et their products beyond their original home country.
"he vocabulary of mar!eting denotes the term as glocal.
03-0uropean 3nion forms a single mar!et and used euro as a common currency.
27,"7-2orth 7merican ,ree "rade 7greement consist of 3nited states,
4@
CONSUMER
BEHAVIOUR:
Canada and .exico and provide free mar!et access to more than 4@@ million
consumers.
+eason for being multinational-
Opportunity for future growth.
Consumers are eager to try foreign products.
7c#uiring exposure to other cultures-
Some consumers get exposure to other culture by their own initiatives li!e travel,
wor!ing in foreign, etc.
Consumers taste different culture from contact with foreign movie.
Consumers taste different culture by buying unfamiliar or different product.
.ar!eters bring new products, services, practices or ideas for international
mar!eting and it gives cultural transfer.
Country-of-origin effects-
Consumers ma!e purchase decision in considering country of origin of their
choice.
0g- consumers associate ,rance with Cine, ,ashion clothing and perfume,
:ermany with cars and machinery.
Some consumers restrict buying product from other countries due to animosity.
0g- .any Chinese consumers consider Sony high-end and high-#uality, but may
refuse to buy due to animosity toward Japan
/igh-animosity consumers own fewer Japanese products than low-animosity
consumers
Cross cultural consumer analysis-
)t is defined as the effort to determine to what extend the consumers of two or
more nations are similar or different.
)ssues in Cross-Cultural Consumer 7nalysis
Similarities and ifferences 7mong 'eople
"ime 0ffects
"he :rowing :lobal .iddle Class
7cculturation
+esearch "echni#ues
Similarities and ifferences 7mong 'eople-
Cross-cultural consumers analysis is used to determine how consumers of two or
more societies are similar or different.
"his analysis helps the mar!eter to device appropriate individualized strategies to
reach consumers in specific foreign mar!et.
0g- )M07 furniture company offers 14 localized websites describing the product
in the localized language.
41
CONSUMER
BEHAVIOUR:
"he :rowing :lobal .iddle Class-
:rowing middle class in developing countries is a attractive phenomenon to the
global mar!eters.
.iddle class consumers have more discretionary>or spending? income which
ma!es the mar!eters to target the middle class segment.
+egulation in different countries may preclude the use of some mar!eting
practices.
0g- :ermany advertising rule do not permit comparative advertisement.
7cculturation-
7cculturation is the learning of a new AforeignB culture
.
.ar!eters should learn the culture of other countries where they want to sell their
product.
Cross-cultural acculturation is a dual process for mar!eters-
.ar!eters must be sensitive to the prevailing attitudes, behaviors and
values to appropriately position and mar!et their product.
"o gain acceptance of their product in the foreign nation, mar!eters should
develop a strategy that encourage members of that society to change their attitude and
alter their behaviour.
7pplying research techni#ues-
Since there are many research issues exist in cross-cultural analysis mar!eters
should use the research service facility available in the foreign nation to evaluate their
potential ma!et.
+esearch )ssues in cross-cultural analysis-> >slide?
7lternative multinational strategies-
:lobal Ds local
,avoring a ACorld &randB
7daptive :lobal .ar!eting
,ramewor! for 7ssessing .ultinational Strategies
:lobal
$ocal
.ixed
:lobal Ds local-
Corld mar!ets are becoming more similar so the challenges for the mar!eters are-
Chether to use shared needs and values as a segmentation strategy.
Chether to use national borders as a segmentation strategy.
,avoring a ACorld &randB-
4*
CONSUMER
BEHAVIOUR:
Some firms have created world brand product that are manufactured, pac!ed and
positioned in exactly the same way regardless of the country in which they are sold but
the advertisement is in the specific target language.
0g- '%: Rs global brands are- 'antene, oil of Olay, etc.
7daptive :lobal .ar!eting-
Some firm6s mar!eting strategy adapts their advertisement messages to the
specific values of particular cultures.
"hese firms follow AmultilocalB strategies and are called as AglocalB companies.
0g- .conald6s, +eebo! and $evi6s.
,ramewor! for 7ssessing .ultinational Strategies-
.ar!eting .ista!es- 7 ,ailure to 3nderstand ifferences
PRODUCT
STRATE.+
COMMUNICATON
STRATE.+
STANDARDI9ED
COMMUNICATIONS
,OCA,I9ED
COMMUNICATIONS
STANDARDI9ED
PRODUCT
.(o%$( st!$te*y:
3niform 'roduct( 3niform
.essage
Mi1e) St!$te*y:
3niform 'roduct(
Customized .essage
,OCA,I9ED
PRODUCT
Mi1e) st!$te*y:
Customized 'roduct(
3niform .essage
,oc$( St!$te*y:
Customized 'roduct(
Customized .essage
41
CONSUMER
BEHAVIOUR:
'roduct 'roblems
'romotional 'roblems
'ricing and istribution 'roblems
'roduct 'roblems-
Sometimes mar!eters neglect to modify their products to meet local customs and
taste.
0g- Snapple failed because Japanese consumers preferred clear, less sweet iced
tea but it is unwilling or too slow to alter its ingredients.
Colour is a critical variable because it has different meaning in different culture.
0g- .eanings of &lue-
/olland - warmth
)ran - death
Sweden - coldness
)ndia - purity
'romotional problem-
"he promotional message must be consistent with the language and customs of
the particular target society.
'ricing and istribution 'roblems-
'ricing and istribution 'olicies should meet the local economic condition and
customs of the target mar!et.
0g- in many nations small sized product pac!ages are necessary because
consumers are not affordable for larger pac!s.
SOCIA, C,ASS CU,TURA, ASPECTS:
efinition-
Social class is defined as the division of members of a society into a hierarchy of
distinct status classes, so that members of each class have relatively the same status and
members of all other classes have either more or less status.
Social class and social status-
Social class is measured in terms of social status.
Social stratification- Social status is fre#uently thought of as the relatively
ran!ings of members of each social class in terms of specific status factors.
Status factors are wealth, power and prestige.
Social comparison theory- individuals #uite normally compare their own material
possession with those owned by others in order to determine their relative social standing.
Status and consumer purchasing power are related, individuals with more
purchasing power have more status.
Status consumption- "he process by which consumers endeavor to increase their
social standing through conspicuous consumption or possession.
44
CONSUMER
BEHAVIOUR:
Socioeconomic variables as expression of status are family income, occupational
status and educational attainment.
Social class is hierarchical and a natural form of segmentation-
Social class categories are ran!ed in hierarchy ranging from low to high status.
/ierarchical aspects of social class are important for the mar!eters because
consumers purchase certain products favored by the members of higher social class and
avoid certain product, as they are perceived as lower class products.
Social class membership serves as a important reference group in the
development of attitude and behaviours.
Social class categories-
"wo-category social-class schemas-
0g- blue-collar, white collar
$ower, upper
"hree-category social-class schemas-
0g- blue-collar, gray collar, while collar
$ower, middle, upper
,our-category social-class schemas-
0g- lower, lower-middle, upper-middle, upper
,ive-category social-class schemas-
0g- lower, lower-middle, middle, upper-middle, upper
Six-category social-class schemas-
0g- lower-lower, upper-lower, lower-middle, upper-middle, lower-
upper, upper-upper.
Seven-category social-class schemas-
0g- - real lower-lower, a lower group of people but not the lowest,
wor!ing class, middle class, upper-middle, lower-upper, upper-upper.
2ine-category social-class schemas-
0g- lower-lower, middle-lower, upper-lower, lower-middle, middle-
middle, upper-middle, lower-upper, middle-upper, upper-upper.
.easurement of social class-
"hree measures of social class are-
Sub<ective measures
+eputational measures
Ob<ective measures
Sub<ective measures-
)n sub<ective approach of measuring social class, individuals are as!ed to estimate
their own social class.
"he result may not be accurate because it gives the individuals self-perception or
self-image.
+eputational measures-
45
CONSUMER
BEHAVIOUR:
"he +eputational approach re#uires selected community informants to ma!e
initial <udgment concerning the social class membership of others within the community.
"he final tas! of assigning the community members to the social class position
belongs to the trained researcher.
)t is proved as impractical because this approach gives the understanding of social
class structure and not the consumption behaviour within the class, which is the purpose
of the measure.
Ob<ective measures-
Ob<ective measure consists of some socioeconomic variables li!e occupation,
education and amount of income.
"hese variables are measured through #uestionnaires, which have some factual
#uestions about themselves, their family and the place of residence.
"wo categories of ob<ective measures are-
Single-variable indexes- occupation, education and income.
Composite-variable indexes- combine a number of socioeconomic factors.
Social-class mobility-
)ndividual can move either up or down in the social-class position held by their
parents.
/igher education and high-income level favours upward mobility.
3pward mobility is common in 7merican society.
:eodemographic clustering-
$in!ing of consumer-related geographic and socio-economic data is called as
geodemographic clustering.
7ffluent consumers-
7ffluent consumers are rich or well off people.
7ffluent consumers constitute an attractive target segment because they have
larger share of discretionary >or disposable? income.
'ositive relationship exists between health and economic status. ie. /ealthiest
people are economically advantaged.
Segmenting the affluent mar!et-
7ffluent consumers are broadly divided into * groups-
3pbeat en<oyers- who live for today.
,inancial positives- who are conservative and wealth savers.
7ccording to .ediamar! +esearch )nc.>.+)? the mar!et segmentation schema of
upper dec! consumers are-
Cell-featured nests- household with atleast one high-income earner and
children present.
2o strings attached- household with atleast one high-income earner and
no children.
48
CONSUMER
BEHAVIOUR:
2anny6s incharge- households that have two or more earners none earning
high income and children present.
"wo careers- households that have two or more earners neither earning
high income and no children.
"he good life- households that have high degree of affluence with no
persons employed.
"he rural affluent customer segments are-
Suburban transplants- those who move to the country but still commute
>travel? to high paying urban <obs.
0#uity-rich suburban expatriates- urbanites who sell their home for high
profit and buy a less expensive home in a small town and live.
City fol!s with country homes- wealthy vacationers who spend their
winter or summers in scenic rural areas.
Cealthy landowners- wealthy farmers.
2on-affluent consumers-
$ower income or downscale consumers are called as non-affluent consumers.
"hese consumers reflect modest lifestyles
"hey are more brand loyal because they are not affordable to ma!e mista!e by
switching over to unfamiliar brands.
7rrival of techno-class-
"echno-class is a new type of social class category.
"he degree of literacy, familiarity and competency with technology is the base for
this class standing.
"echnological class structure centers the amount of computer s!ills that one
possesses.
$ac! of computer s!ill is referred as technologically underclassed.
Consumer behaviour applications of social class-
Some of the applications are-
Clothing-
'eople dress to fit their self-image
)ndividuals clothing reflects their perception of their own social class
membership.
,ashion-
Specific social class differ in terms of what they consider as fashionable or in
good taste.
0g- lower middle class consumers prefer "-shirt with admired personality
pictures as an external point of identification.
3pper class consumers prefer clothing with subtle >fine? loo!.
Shopping-
'eople avoid stores that have image appealing to a social class very different from
their own.
0g- wal-mart tends to target more on wor!ing class customers.
49
CONSUMER
BEHAVIOUR:
'ursuit of leisure-
ifferent social class members differ in the choice of recreational and leisure-time
activities.
0g- upper class consumers go to theaters, read novels, etc.
$ower class consumers watch "D, go for fishing, etc.
Saving, spending and credit-
3pper class consumers are more future oriented and invest in insurance, stoc!s
and real estates.
$ower class consumers see!s immediate gratification and are interested in safety
and security.
$ower class purchaser use credit cards to Abuy now and pay laterB.
3pper class consumers use credit card as a Asubstitute for moneyB.
CU,TURE:> >slide?
efinition-
"he sum total of learned beliefs, values, and customs that serve to regulate the
consumer behavior of members of a particular society
Culture satisfies needs-
Culture exist to satisfy the needs of the people within a society.
Culture offers order, direction, and guidance in all phases of human problem
solving- Chen to eat, where to eat, what to eat for each meal, what to serve guests at a
dinner party, picnic, or wedding.
Culture is learned-
1 forms of cultural learning are-
,ormal learning- the elders of the family teach a young family member
Ahow to behaveB.
)nformal learning- child learns by imitating the behaviour of friends or
family members.
"echnical learning- teacher instructs a child in educational settings to
behave in a certain manner.
)ssues in culture-
0nculturation and acculturation
$anguage and symbols
+itual
Sharing of Culture
0nculturation and acculturation-
"he learning of one6s own culture is !nown as enculturation.
"he learning of a new foreign culture is !nown as acculturation.
$anguage and symbols-
4;
CONSUMER
BEHAVIOUR:
.embers of common culture share common language for efficient
communication.
Symbol is anything that stands for something else.
.ar!eters use verbal or non-verbal symbols to convey desired product images.
Derbal symbols are ad in magazine or "D announcements.
2onverbal symbols are figures, colors, shapes, etc.
+itual-
+itual is a type of symbolic activity consisting of a series of steps occurring in a
fixed se#uence and repeated overtime.
Sharing of Culture-
Culture is viewed as a group customs that lin! together the members of a society.
Other institutions, which share the responsibility of cultural transfer, are-
educational institution and houses of worship.
.easurement of culture-
Content 7nalysis
Consumer ,ieldwor!
Dalue .easurement )nstruments
Content 7nalysis
Content analysis is a
method for systematically analyzing the content of verbal, written and pictorial
communication.
"he method is fre#uently used to determine prevailing social values of a society.
Consumer ,ieldwor!-
7 cultural measurement techni#ue that ta!es place within a natural environment that
focuses on observing behavior >sometimes without the sub<ects6 awareness?.
Characteristics of ,ield Observation
"a!es place within a natural environment
'erformed sometimes without the sub<ect6s awareness
,ocuses on observation of behavior
'articipant-Observers 'articipant-Observers
-
+esearchers who participate in the environment that they are studying without notifying
those who are being observed.
Dalue .easurement Survey )nstruments-
4=
CONSUMER
BEHAVIOUR:
+o!each Dalue Survey >+DS?- 7 self-administered inventory consisting of
eighteen AterminalB values >i.e., personal goals? and eighteen AinstrumentalB values >i.e.,
ways of reaching personal goals?.
$ist of Dalues >$OD?- 7 value measurement instrument that as!s consumers to identify
their two most important values from a nine-value list that is based on the terminal values
of the +o!each Dalue Survey
Dalues and $ifestyles >D7$S?- 7 value measurement based on two categories-
self-definition and resources.
UNIT IV2o)u(e :4
CONSUMER DECISION PROCESS AND POST0PURCHASE
BEHAVIOUR
PERSONA, INF,UENCE AND OPINION ,EADERSHIP-
efinition-
Opinion leadership is the process by which one person >the opinion leader?
informally influences the consumption actions or attitudes of others who may be opinion
see!ers or opinion recipients.
0lements of opinion leadership-

Opinion
,e$)e!
Opinion
Recei&e!
Opinion
See/e!
5@
CONSUMER
BEHAVIOUR:
Opinion leader- individuals who influence the behaviour of others.
Opinion receiver or opinion recipients- individuals who receive information without
consciously searching for it.
Opinion see!ers- individuals who actively see! information and advice about a product.
0xamples of Opinion $eadership
-
uring a coffee brea!, a co-wor!er tal!s about the movie he saw last night and
recommends seeing it.
7 family decides that they would li!e a swimming pool for their bac!yard and
they as! neighbours who have pools which pool construction company they should call.
Diral .ar!eting-
)t is named viral because it allows the message to spread li!e a virus.
Diral mar!eting describe any strategy that encourages individuals to pass on a
mar!eting message to others, creating the potential for exponential growth in the
message6s exposure and influence.
"he other names of viral mar!eting are-
&uzz .ar!eting
Cildfire .ar!eting
7valanche .ar!eting
+easons for the 0ffectiveness of Opinion $eadership-
Credibility
'ositive and 2egative 'roduct )nformation
)nformation and 7dvice
Opinion $eadership )s Category-Specific
Opinion $eadership )s a "wo-way Street
Credibility-
Opinion leaders are highly credible source of information and have first hand
experience with the product.
"hey receive no compensation for their advice.
"hey do not have commercial motive.
'ositive and 2egative 'roduct )nformation-
Opinion leader provide both positive and negative product information.
)nformation and 7dvice-
Opinion leaders are the source of both information and advice.
51
CONSUMER
BEHAVIOUR:
"hey may share their experience with the product or aggressively advice others to
buy or avoid a specific product.
Opinion $eadership )s Category-Specific-
Opinion leaders specialize in certain product category about which they provide
information or advice.
Opinion $eadership )s a "wo-way Street-
Consumers who are opinion leaders in one product-related situation may become
opinion receivers in another situation, even for the same product.
.otivations &ehind Opinion $eadership-
"he 2eeds of Opinion $eaders
"he 2eeds of Opinion +eceivers
'urchase 'als
Surrogate &uyers versus Opinion $eaders
"he 2eeds of Opinion $eaders-
Opinion leaders may try to reduce their own post purchase dissonance.
opinion leaders are motivated by self-involvement, product involvement, social
involvement and message involvement.
"he 2eeds of Opinion +eceivers-
Opinion receivers obtain new-product or new-usage information.
Opinion receivers reduce their perceived ris!.
"hey reduce their search time.
'urchase 'als-
'urchase pals are information sources who actually accompany consumers on
shopping trips.
.ale purchase pals are the source of product category expertise, product
information, retail store and price information.
,emale purchase pals gives moral support and increase confidence in the buyers
decision.
Surrogate &uyers versus Opinion $eaders-
O')2)O2 $070+-
1. )nformal relationship with end-users
*. )nformation exchange occurs in the context of a casual interaction
1. /omophilous >to a certain extent? to end-users
4. oes not get paid for advice
5. 3sually socially more active than end-users
8. 7ccountability limited regarding the outcome of advice
9. 7s accountability limited, rigor in search and screening of alternatives low
5*
CONSUMER
BEHAVIOUR:
;. $i!ely to have used the product personally
=. .ore than one can be consulted before ma!ing a final decision
1@. Same person can be an opinion leader for a variety of related product
categories
S3++O:7"0 &3P0+

1. ,ormal relationshipE occupation-related status
*. )nformation exchange in the form of formal instructions(advice
1. /eterophilus to end users >that is, is the source of power?
4. 3sually hired, therefore gets paid
5. 2ot necessarily socially more active than end-users
8. /igh level of accountability
9. Search and screening of alternatives more rigorous
;. .ay not have used the product for personal consumption
=. Second opinion ta!en on rare occasions
1@. 3sually specializes for a specific product(service category
.easurement of Opinion $eadership-
Self-esignating .ethod
Sociometric .ethod
Mey )nformant .ethod
Ob<ective .ethod
S0$,-0S):27")2:
.0"/O
Ao you influence
other people in their
selection of
productsLB
0ach respondent is as!ed a
series of #uestions to determine
the degree to which he or she
perceives himself or herself to
be an opinion leader.
OPINION ,EADERSHIP OPINION ,EADERSHIP
MEASUREMENT MEASUREMENT
METHOD METHOD
SAMP,E SAMP,E
;UESTIONS AS-ED ;UESTIONS AS-ED
DESCRIPTION OF METHOD DESCRIPTION OF METHOD
SOC)O.0"+)C
.0"/O
.embers of a social system are
as!ed to identify to whom they
give advice and to whom they
go for advice.
AChom do you
as!LBACho as!s you
for info about that
product categoryLB
OPINION OPINION
,EADERSHIP ,EADERSHIP
MEASUREMENT MEASUREMENT
METHOD METHOD
SAMP,E SAMP,E
;UESTIONS AS-ED ;UESTIONS AS-ED
DESCRIPTION OF METHOD DESCRIPTION OF METHOD
M0P )2,O+.72"
.0"/O
ACho are the most
influential people in
the groupLB
Carefully selected !ey informants in
a social system are as!ed to designate
opinion leaders.
7rtificially places individuals in a
position to act as opinion leaders and
measures results of their efforts.
A/ave you tried the
productL
O&J0C")D0
.0"/O
51
CONSUMER
BEHAVIOUR:
'rofile of Opinion $eaders-
,re#uency and overlap of opinion leadership-
Opinion leadership tends to overlap across certain combination of interest areas.
Opinion leaders in one product area often are opinion leaders in related areas in
which they are also interested.
.ar!et maven-
.ENERA,I9ED
ATTRIBUTES ACROSS
PRODUCT CATE.ORIES
CATE.OR+0SPECIFIC
ATTRIBUTES
)nnovativeness
Cillingness to tal!
Self-confidence
:regariousness
Cognitive differentiation
)nterest
Mnowledge
Special-interest media exposure
Same age
Same social status
Social exposure outside group
54
CONSUMER
BEHAVIOUR:
)ndividuals whose influence stems from a general !nowledge or mar!et expertise
that leads to an early awareness of new products and services.
"he )nterpersonal ,low of Communication
"wo-Step ,low-
7 communication model that portrays opinion leaders as direct receivers of
information from mass media sources who, in turn, interpret and transmit this
information.
.ultistep ,low-
7 revision of the traditional two-step theory that shows multiple communication
flows.
Opinion leaders both influence and are influenced by opinion receivers.
)ssues )n Opinion $eadership and .ar!eting Strategy-
.ar!eters are aware of the power that opinion leader
M$ss
Me)i$
Opinion
,e$)e!s
Opinion
Recei&e!s
2t#e
$sses4
Step < Step =
Info!$tio
n Recei&e!s
55
CONSUMER
BEHAVIOUR:
ship exerts on consumer preference so they encourage word-of-mouth communication.
0g- Sony Cal!man attained its mar!et share by word-of-mouth communication.
.ar!eters strategy to stimulate opinion leaders are-
'rograms esigned to Stimulate Opinion $eadership
7dvertisements Stimulating Opinion $eadership
Cord of .outh .ay &e 3ncontrollable
Creation of Opinion $eaders
'rograms esigned to Stimulate Opinion $eadership-
7dvertisement and promotional program designed to persuade consumers to Atell
your friends how much you li!e our productB are one way in which mar!eters encourage
consumer discussion of their product and services.
7dvertisements Stimulating Opinion $eadership-
7dvertisements stimulate product discussion by portraying people in the act of
informal communication.
0g- informal communication of more women is often portrayed in "D
advertisement of personal care products.
Cord of .outh .ay &e 3ncontrollable-
Cord-of Fmouth is difficult to control so both positive and negative product
information spreads li!e a forest fire.
Creation of Opinion $eaders-
'roduct-specific opinion leaders can be created by ta!ing socially involved or
influential people and deliberating increasing their enthusiasm for a product category.
DIFFUSION OF INNOVATIONS:
"he framewor! of exploring consumer acceptance of new products is !nown as
diffusion of innovations.
"wo important processes under the study of diffusion of innovations are-
iffusion process.
7doption process.
iffusion 'rocess iffusion 'rocess
-
"he process by which the acceptance of an innovation >new product, new idea or
new service? is spread by communication to members of social system >target mar!et?
over a period of time.
)t is a macro process.
0lements of the iffusion 'rocess
-
"he )nnovation
"he Channels of Communication
"he Social System
"ime
58
CONSUMER
BEHAVIOUR:
"he innovation-
Darious definition of innovation or new products are-
,irm-oriented definitions
'roduct-oriented definitions
.ar!et-oriented definitions
Consumer-oriented definitions
,irm-oriented definitions-
"his approach defines a product as new when the company produces it or mar!ets
it for the first time.
'roduct-oriented definitions-
"his approach defines the newness of the product based on the feature inherent in
the product and on the effect these features are li!ely to have on consumers.
.ar!et-oriented definitions-
"his approach defines the newness of the product in terms of how much exposure
consumers have to the new products.
Consumer-oriented definitions-
Consumer-oriented approach a new product is any product that a potential
consumers <udges to be new.
"he channels of communication-
Communication channels helps in spreading the innovation to the target mar!et.
Some of the sources of communication are-
Cord-of-mouth communication.
)mpersonal sources >advertising and editorial matters?
)nterpersonal sources >salespeople and informal opinion leaders?
"he social system-
7 social system is a physical, social or cultural environment to which people
belong and within which they function.
0g- for a new hybrid seed corn the social system is all the farmers.
"ime-
"ime is a bac!bone of diffusion process.
"hree aspects under this are-
"he amount of purchase time
"he identification of adopter categories
"he rate of adoption
'urchase time-
59
CONSUMER
BEHAVIOUR:
'urchase time is the amount of time that elapses between consumer6s initial
awareness of a new product and point at which they purchase or re<ect it.
"his gives information about the total time ta!en by the new product to achieve
widespread adoption.
7dopters categories-
7 se#uence of categories that describes how early >or late? a consumer adopts a
new product in relation to other adopters.
7dopter categories are-
)nnovators-
Denturesome
Dery eager to try new ideas
7cceptable if ris! is daring
.ore cosmopolite social relationships
Communicates with other innovators
0arly 7dopters-
+espected
.ore integrated into the local social system
"he persons to chec! with before adopting a new idea
Category contains greatest number of opinion leaders
7re role models
0arly .a<ority-
eliberate
7dopt new ideas <ust prior to the average time
Seldom hold leadership positions
eliberate for some time before adopting
$ate .a<ority-
S!eptical
7dopt new ideas <ust after the average time
7dopting may be both an economic necessity and a reaction to
peer pressures
)nnovations approached cautiously
$aggards
-
"raditional
"he last people to adopt an innovation
.ost AlocaliteB in outloo!
Oriented to the past
Suspicious of the new
+ate of adoption-
5;
CONSUMER
BEHAVIOUR:
"he time ta!en by a new product to get adopted to the members of social system.
.ar!eters adopts two types of policy to increase the adoption rate-
'enetration policy
S!imming policy
7doption 'rocess 7doption 'rocess
-
"he stages through which an individual consumer passes in arriving at a decision
to try >or not to try?, to continue using >or discontinue using? a new product.
)t is a micro process.
Stages in adoption process-
NAME OF
STA.E
"HAT HAPPENS DURIN. THIS
STA.E
E>AMP,E
7wareness
Consumer is first exposed to the
product innovation.
Janet sees an ad for a new .'1 player in the magazine she is
reading.
)nterest
Consumer is interested in the product
and searches for additional
information.
Janet reads about the .'1 player on the manufacturer6s Ceb
site and then goes to an electronics store near her apartment and
has a salesperson show her a unit.
0valuation
Consumer decides whether or not to
believe that this product or service
will satisfy the need--a !ind of
Amental trial.B
7fter tal!ing to a !nowledgeable friend, Janet decides that this
.'1 player will allow her to easily download the .'1 files that
she has on her computer. She also feels that the unit6s size is
small enough to easily fit into her beltpac!.
"rial
Consumer uses the product on a
limited basis
Since an .'1 player cannot be AtriedB li!e a small tube of
toothpaste, Janet buys the .'1 player online from
7mazon.com, which offers a 1@-day full refund policy.
7doption
>+e<ection?
)f trial is favorable, consumer decides
to use the product on a full, rather
than a limited basis--if unfavorable,
the consumer decides to re<ect it.
Janet finds that the .'1 player is easy to use and that the sound
#uality is excellent. She !eeps the .'1 player.
NAME OF
STA.E
"HAT HAPPENS DURIN. THIS
STA.E
E>AMP,E
5=
CONSUMER
BEHAVIOUR:
7doption process model- >slide?
'rofile of consumer innovators-
efining the Consumer )nnovator
)nterest in the 'roduct Category
"he )nnovator )s an Opinion $eader
'ersonality "raits
.edia /abits
Social Characteristics
emographic Characteristics
efining the Consumer )nnovator-
Consumer innovators are small group of consumers who are the earliest
purchaser of a new product.
)nterest in the 'roduct Category-
Consumer innovators are more interested in the product category because they are
the early purchaser of the new product.
"he )nnovator )s an Opinion $eader-
Consumer innovators provide other consumers with information or advice about
new product and influence the behaviour of others so they are called as opinion leaders.
'ersonality "raits-
Consumer innovators are
$ess dogmatic- approach new product with openness.
2eed for uni#ueness- they feel to be seen uni#ue by using new products.
)nner-directed- they rely on their own values and standards while ma!ing
decision
/igh optimum stimulation level- individuals who see! unusual experience.
Dariety see!ing- they are brand switcher and try new products.
.edia /abits-
Consumer innovators are less li!ely to watch "D.
"hey used to read special interest magazines.
Social Characteristics-
Consumer innovators are more socially involved and socially accepted by others.
8@
CONSUMER
BEHAVIOUR:
emographic Characteristics-
"he demographic characteristics of consumer innovators are-
Poung person
/igher personal income
.ore formal education
/igher occupational status
CONSUMER DECISION MA-IN. PROCESS:
Steps in consumer decision ma!ing process are-
2eed recognition
Search for information
're - purchase evaluation of alternatives
'urchase
Consumption
'ost purchase evaluation
isinvestments
MODE,S OF CONSUMER DECISION PROCESS: Gshopper, buyer and consumer
behaviour F Jay. .$ind#uist F 'g.no-8@5H
NICOSIA MODE,:
,rancesco 2icosia formulated this model.
/e says the act of purchase itself is more complex decision process.
"his model focus on conscious and deliberate decision ma!ing behaviour.
"he fields are components are-
"he firm6s attributes and outputs or communications and the consumers
psychological attributes.
"he consumers search for and evaluation of the firms output and other
available attributes.
81
CONSUMER
BEHAVIOUR:
"he consumers motivated act of purchase.
"he consumers storage or use of the product.
$imitations-
"he flow is incomplete in its treatment of numerous factors internal to the
consumers.
7ssumption that consumer begins the decision process with no predisposition
regarding involved firms is restricting.
HO"ARD0SHETH MODE,:
"his model depicts rational brand choice behaviour by buyer under conditions of
incomplete information and limited abilities.
,our ma<or components are-
)nput variables
Output variables
/ypothetical constructs
0xogenous variables
)nput variables-
Significant stimuli- these are actual elements of brands that the buyer confronts.
Symbolic stimuli- producers representing their products in symbolic form such as
in ad generate these.
Social stimuli- these are generated by social environment including family and
groups.
Output variables-
7ttention- the magnitude of the buyers information inta!e.
Comprehension- the buyers6 store of information about a brand.
7ttitude- the buyer evaluation of particular brand potential to satisfy his motives.
)ntension- the buyers forecast of which brand he will buy.
'urchase behaviour- the actual purchase act.
/ypothetical constructs-
"he perceptual constructs are-
Sensitivity to information- the degree to which the buyer regulates the
stimulus information flow.
'erceptual bias- distorting or altering information.
Search for information- active see!ing of information about brands.
"he learning constructs are-
.otive- general or specific goals impelling action.
&rand potential of the evo!ed set- the buyer perception that the brand in
the evo!ed set will satisfy his needs.
ecision mediators- the buyers6 mental rule of matching and ran!ing
purchase alternatives according to his motives.
)nhibitors- environmental factors such as price which restrain purchase of
a preferred brand.
8*
CONSUMER
BEHAVIOUR:
Satisfaction
0xogenous variables-
"hese are not well defined as they are external to buyers.
$imitations-
2o sharp distinction between exogenous and other variables.
Some variables are not well defined and difficult to measure.
"his model is complex.
EN.E,0-O,,AT MODE,:
"his model is developed in 1=8; by 0ngel, Mollat and &lac!well.
"he steps in decision process that occurs overtime are-
.otivation and need recognition
Search for information
7lternative evaluation
'urchase
Outcomes
"he variables are grouped into four categories. "hey are-
Stimulus inputs
)nformation processing
ecision process
Dariables influencing the decision process
"wo different mode of operation by consumers are-
0xtended problem solving- it is characterized by high level of involvement
and high perceived ris! so satisfaction with the brand gives commitment to use the brand.
$imited problem solving- it is characterized by low level of involvement
and low perceived ris! so motivation to search for brand information is low and
consumers will engage in nonrigirous evaluation of alternatives.
$imitations-
"he role of some variables are vague.
"he role of motives in influencing behaviour is also vague.
"his model is mechanistic in its treatment of decision process.
POST PURCHASE BEHAVIOUR- Gshopper, buyer and consumer behaviour F Jay.
.$ind#uist F 'g.no-11@H
'ost purchase behaviour is the behaviour of the consumers after purchasing a
product.
7nalyzing the post purchase behaviour is important because it has an impact on
future sales.
'ost purchase behaviour analysis helps the mar!eter to improve products or
services, design better promotion strategy, etc.
"his behaviour can be-
'ositive post purchase behaviour.
2egative post purchase behaviour.
81
CONSUMER
BEHAVIOUR:
'ositive post purchase behaviour-
Chen the consumer is satisfied with the product the positive outcome is gaining
customer loyalty.
$oyalty- a consumer6s feeling of commitment to a product, brand, mar!eters or
outlet that results in high level of repeat purchase or visits.
Consumer loyalty gains repeat purchase and it helps in the formation of purchase
habits.
Once the purchase habits are formed then consumers always search and buy the
same brand in spite of its availability.
&rand loyalty-
,actors influencing brand loyalty-
)n addition to satisfaction with the purchase experience there are several other
factors that influence brand loyalty.
2umber of brands available- the smaller the numbers of brands available
customers are more li!ely to be brand loyal.
,re#uency of purchase- the more fre#uently customers purchase a product the
most li!ely they are brand loyal.
'erceived difference among brands- if the customers perceive significant
difference among brands they tend to be brand loyal.
$evel of involvement- customers remain loyal to high involvement products than
low involvement products.
$evel of perceived ris!- brand loyalty is high when the level of perceived ris!
associated with the choice is high.
&rand benefits- when customer needs are satisfied by a particular brand then it
gains loyalty.
2egative post purchase behaviour-
2egative post purchase behaviour effect the future sales of the product and some
times damages the reputation of the firm.
2egative post purchase behaviour ta!es several forms such as-
2egative word-of-mouth- consumers express their dissatisfaction with the
purchase to others.
+umor- rumors are not only negative information but also untrue
information about products and brands. Some rumors are unintentional but some
are purposely constructed and voiced to do damage.
Complaint behaviour- dissatisfied consumers respond in one of the three
ways.
2o action
'rivate action- warn family and friends or decide not to buy.
'ublic action- see! redress from firm, complaint to government
agency or ta!e legal action to obtain redress.
84
CONSUMER
BEHAVIOUR:
CONSUMER E>PECTATION AND SATISFACTION-
Customer satisfaction is the individual6s perception of the performance of the
product or service in relation to his expectation.
Customer satisfaction is the function of customer expectations.
Customer experience S expectation T issatisfied consumer
Customer experience T expectation T Satisfied Consumer
Customer experience U expectation T elighted consumer
$in! between customer satisfaction and customer behaviour identifies different
types of customers. "hey are-
$oyalists F completely satisfied customer who !eeps purchasing
7postles F delighted consumers who spread positive word of mouth
efectors F ,eels neutral and stop purchasing
"errorists F gets negative experience and spreads negative word of month
/ostages F unhappy customers but !eeps purchasing because of
monopolistic environment
0xpectations-confirmation theory-
0xpectations-confirmation theory posits that expectations, coupled with perceived
performance, lead to post-purchase satisfaction.
"he four main constructs in the model are- expectations, performance, satisfaction
and dissatisfaction.
)f a product outperforms expectations post-purchase satisfaction will result.
)f a product falls short of expectations the consumer is li!ely to be dissatisfied
0xpectations reflect anticipated behavior. 0xpectations serve as the comparison
standardF what consumers use to evaluate performance and form a satisfaction <udgment.
UNIT V
ADDITIONA, DIMENSIONS
CONSUMERISM:
0xpectation
Satisfaction
'erceived
'erformance
issatisfaction
85
CONSUMER
BEHAVIOUR:
efinition-
Consumerism is defined as social force designed to protect consumers interests in
the mar!etplace by organizing and exerting consumer pressure on business.
+oots of consumerism( problems that underlie consumer moments-
isillusionment with the system- consumers feel their bargaining position is
wea!ening.
issatisfaction with the #uality of goods and services- the #uality of the product is
below their expected level.
Consumer information gap- because of time pressure consumers are not able to
collect information so they fail to consume the best.
7nti-advertisement attitude- 7ds are sometimes the source of unrealistic
information, irrational facts or brain washing.
,all in standard of living- the real purchasing power of the consumers is getting
eroded.
3ncooperative mar!eting institution- withholding of information from consumers
and dealing in impersonal way results in the feeling that mar!eters are uncooperative.
.otive of consumerism-
"o ma!e the consumers aware of their rights and unite them into one force.
"o chec! unfair trade practices li!e monopoly power and fight against
exploitation.
"o effectively implement consumer protection law.
"o educate the consumers with latest and complete information.
"o fight against anti-social practice li!e blac! mar!et, hoarding, adulteration, etc.
+ights of consumers-
"he right of safety
"he right to be informed
"he right to choose
"he right to be heard
"he right to see! redressal
"he right to basic needs
"he right to consumer education
CONSUMER PROTECTION:
Consumer protection is the core of consumerism.
Consumer protection means protecting the consumers from the evils of mar!eting.
)t stri!e a balance in the buyer-seller relation.
2eed for consumer protection-
Some products are short in supply when the demands are high so producers try to
exploit the consumers in that situation.
Sometimes producers increase the demand by restricting the supply so they are
able to push up the price.
88
CONSUMER
BEHAVIOUR:
"he producers exploit ignorant and uneducated consumers.
Consumers sometimes will not exercise their rights because of their fear in legal
proceedings.
Since most of the people in )ndia are middle class and poor they consider raising
voice against in<ustice is time wasting activity.
'arties in consumer protection-
"hree parties in consumer protection are-
&usiness
:overnment
Consumers
&usiness-
&usiness comprises of the producers and the distribution channels.
'roducers should pay attention to consumer rights and they should supply #uality
product at reasonable price.
:overnment-
:overnment protects the consumer against exploitation through its interventions.
Consumers-
Consumers should be aware of their rights and should raise voice against illegal
practices.
Consumer protection act 1=;8-
"his act was enacted to promote and protect the rights of the consumers.
)t provides for simple, speedy and inexpensive redressal of grievances.
0xtend and coverage of the act-
"he act applies to all goods and services whether in private, public or cooperative
sectors.
Cho can file a complaintL
7 consumer or any voluntary organization or the government.
Chat constitutes a complaintL
7 complaint in writing should state whether one have suffered a loss due to unfair
trade practices.
Chere to file a complaintL
istrict forum- compensation S 5 la!hs
State commission- 5 la!hs to *@ la!hs
2ational commission- U *@ la!hs
/ow to file a complaintL
Complaint can be made in person or by post or through authorized agents.
89
CONSUMER
BEHAVIOUR:
+elief available to consumers-
"he redressal forum may gives order for removal of defects from goods,
replacement of goods or refund the price.
"ime limit for deciding the case-
"he redressal foreum should address the issue within the period of 1 months from
the date of notice received by the opposite party.
"he features of the act are-
Social welfare legislation
0ffective provisions and safeguards
Special consumer courts
Simple, speedy and inexpensive redressal machinery
Convenient procedure
Covers goods and services
"ime-limits
Class action
Chec! on unfair practices
'rice
Consumer councils
OR.ANI9ATIONA, BU+ER BEHAVIOUR:
efinition-
Organizational buying is the process by which a company(organization
establishes a need for purchasing products and choose among competing brands and
suppliers.
ecision ma!ing unitGbuying centerH-
&uying center is an informal, cross department decision unit in which the primary
ob<ective is the ac#uisition, impartation and processing of relevant purchasing related
information.
&uying center roles-
'rimary roles F deciders and influencers
Secondary roles F users, buyers and gate!eepers
ifferent departments role in business buying-
.ar!eting- purchasing decision has an effect on mar!etability of product so they
are active influencers in purchase decision process.
.anufacturing- responsible for determining the feasibility and economic
consideration of producing end products.
+ % - initial development of product and set board specification for
components.
'urchasing- they are negotiable experts dominant in straight rebuy.
8;
CONSUMER
BEHAVIOUR:
&uying situation-
1 types of situation are-
Straight rebuy-
Straight rebuy is a repetitive or routine buying order placed by the buyer to the
supplier.
.odified rebuy-
"his situation occurs when buyer wants to modify any purchase ie improvement
in product specification and this poses a threat and opportunity to suppliers.
2ew tas!-
"his is most ris!y decision of buyer. &uyer goes for first time purchase so ta!e lot
of time to decide about the purchase.
.odel of industrial buyer behaviour-
"he different aspects of this model are-
ifference between individuals involved and psychological ma!e up
Joint decision ma!ing
'roduct specific factors
Organization factors affecting purchase
Situational factors
Cays of information search
Conflict resolution among individuals
)ndustrial buying behaviour is affected by the bac!ground of the individuals
involved in the purchase. "he factors are-
Specialized education
+oles and status
$ifestyle
0xpectation from the product