PROJECT REPORT ON

CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING

WITH PURCHASE PROCESS AND POST PURCHASE BEHAVIOR


SUBMITTED BY
RAJESH CHAURASIYA
M.Com Semester -1
Roll No. 19
Academic Year 2014-15


PROJECT GUIDE
Prof. SHAUKAT ALI


Anjuman - I - Islam
Akbar Peerbhoy College of Commerce & Economics
MS. Road, Two Tank,
Mumbai 400 008.




Anjuman - I - I slam
Akbar Peerbhoy College of Commerce & Economics
NAAC ACCREDITED COLLEGE
Maulana Shaukatali Road, Do Taki, Mumbai 400 008.
Email : apcce_college@yahoo.co.in, appce_college@rediffmail.com
Website : www.apcollege.in

Ref. : No. ___________

CERTIFICATE
I Principal Dr. SHEIKH MEHMOOD HASAN here by certify that Mr. RAJESH
CHAURASIYA of Master of Commerce (M.Com) Part-1, Roll No. 19 Academic Year 2014-15
has completed project on CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING WITH
PURCHASE PROCESS AND POST PURCHASE BEHAVIOUR, the information submitted is true and
original to the best of my knowledge.


Dr. Sheikh Mehmood Hasan
(Principal)






DECLARATION




I, Rajesh Chaurasiya
of AKBAR PEERBHOY COLLECGE OF COMMERECE AND ECONOMICS
M.com Part - 1, Sem. 1

hereby declare that I have completed the project on
CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING WITH PURCHASE
PROCESS AND POST PURCHASE BEHAVIOUR in academic year2014-15.
The information submitted is true and original of the best my knowledge


Place : Mumbai
Date :
Rajesh Chaurasiya
ACKNOWLEDGMENT

We take this opportunity to thank all the individual under
Whose valuable guidance helped us to come up with successful
completion of the project CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING
WITH PURCHASE PROCESS AND POST PURCHASE BEHAVIOUR

I express my sincere thanks to the Dr. Sheikh Mehmood Hasan (principal of Akbar Peerbhoy
College of Commere And Economics) for giving us chance to
Fabricate our skills & come up with such an output.

I would personally thanks to our project Co-ordinate
Prof. Dr. Shaukat Ali for his support.

I got amazing experience working on this project and would
Once again wish thank all people related to it for making the
experience and so much fun.


Thank You





Evaluation
Project Report on
CONSUMER BEHAVIOUR AND LIFESTYLE MARKETING WITH PURCHASE
PROCESS AND POST PURCHASE BEHAVIOUR
M. Com. Part 1
UNIVERSITY OF MUMBAI
2014-2015















Internal Examiner External Examiner
________________ _________________

INDEX


Sr.
No.
Particulars Page No.
1 Consumer Behaviour 1 2
2 Impact of Gender on Consumer Purchase Behaviour 2 4
3 Post Purchase Behaviour and Disposal 4-5
4 Consumer Behaviour And Lifestyle Marketing 6
5 Post-purchase decision Processes and Behaviour 6-18

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CONSUMER BEHAVIOUR

Consumer Behaviour is the study of individuals, groups, or organizations and the processes they use to
select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these
processes have on the consumer and society.
[1]
It blends elements from psychology, sociology, social anthropology,
marketing and economics. It attempts to understand the decision-making processes of buyers, both individually and
in groups such as how emotions affect buying behaviour. It studies characteristics of individual consumers such
as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct
roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts
in the field.
[2]
Relationship marketingis an influential asset for customer behaviour analysis as it has a keen interest
in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer
or buyer. A greater importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and
welfare functions.
Each method for vote counting is assumed as social function but if Arrows possibility theorem is used for a social
function, social welfare function is achieved. Some specifications of the social functions are
decisiveness, neutrality, anonymity, monotonicity,unanimity, homogeneity and weak and strong Pareto optimality.
No social choice function meets these requirements in an ordinal scale simultaneously. The most important
characteristic of a social function is identification of the interactive effect of alternatives and creating a logical
relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind the productive
system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et
al., 2009).

Purchase Decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes
purchase intention does not result in an actual purchase. The marketing organisation must facilitate the
consumer to act on their purchase intention. The organisation can use a variety of techniques to achieve this.
The provision of credit or payment terms may encourage purchase, or a sales promotion such as the
opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant
internal psychological process that is associated with purchase decision is integration. Once the integration is
achieved, the organisation can influence the purchase decisions much more easily.
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There are 5 stages of a consumer buying process
[6]
they are: The problem recognition stage, meaning the
identification of something a consumer needs. The search for information, which means you search your
knowledge bases or external knowledge sources for information on the product. The possibility of alternative
options, meaning whether there is another better or cheaper product available. The choice to purchase the
product and then finally the actual purchase of the product.
[6]
This shows the complete process that a consumer
will most likely, whether recognisably or not, go through when they go to buy a product.
Post Purchase Evaluation
The EKB (Engel, Kollat, Blackwell) model
[7]
was further developed by Rice (1993) which suggested there
should be a feedback loop, Foxall (2005)
[8]
further suggests the importance of the post purchase evaluation and
that it is key because of its influences on future purchase patterns.
Impact of Gender on Consumer Purchase Behaviour
Introduction
Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It
attempts to understand the buyer decision making process and studies characteristics of individual consumers
as well as groups in an attempt to understand peoples wants and needs. Consumer behaviour research is the
scientific study of the processes consumers use to select, secure, use and dispose of products and services that
satisfy their needs. Knowledge of consumer behaviour directly affects marketing strategy (Anderson et al,
2005).



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Factors Influencing Consumer Behavior
There are various factors that influence the way people behave in a particular situation. Consumers
vary tremendously in age, income, education, tastes, and other factors. The behaviour of consumer while
engaging in a purchase decision is influenced by these characteristics.
Consumer characteristics include four major factors and these factors are majorly responsible for the
different types of behaviors depicted by the consumers. Though it does not mean that people of same, age or
gender or social background are similar, because there is a lot of influence of the psychological factors that
vary from individual to individual.
Following factors can influence the Buying decision of the buyer:
Cultural: Culture is the fundamental determinant of a persons wants and behaviors acquired through
socialization processes with family and other key institutions.
Social : Consumer Behaviour is also influenced by social factors like reference Groups, family, social Role
and status
Personal: A buyers decisions are majorly influenced by personal characteristics like gender, age, stage in
lifecycle, occupation, income, and lifestyle.
Psychological: Psychological factors like motivation, perception, beliefs & attitudes of consumers also have
a deep impact on the buyer decision.
Process of Purchase Decision
Understanding consumers purchase decision-making process allows marketers to gain more knowledge about
their consumers. Moreover, it can be a foundation for them to create more suitable marketing strategies for
their target consumers. If marketers understand this process of their consumers, they will know how their
consumers search for information before buying, which criteria can encourage them to buy, and what factors
influence their purchase decision-making. (Solomon et al., 2010) In many consumer behaviour studies, the
classic view of consumer behaviour principle is the five stage of decision-making model, which is based on
the idea that considers consumers as an information-processing machine. The classical five stages of
consumer decision-making process are (1) problem recognition, (2) information search, (3) alternatives
evaluation, (4) product choice, and (5) post-purchase evaluation. (Solomon et al., 2010)
Problem Recognition
Problem recognition is the first stage of consumer decision-making process. It happens when consumer
realizes that there are some differences between their actual state and ideal or desired state.
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Information Search
Information search is the stage when consumers are searching for more knowledge in order to solve the
recognized problem. To help themselves to make a decision, consumers will look for information from their
environment. (Solomon et al., 2010) Information search process can be classified into two types. Firstly, the
pre-purchase search process is the process when consumers seek for the information to satisfy their needs or
solve their problems, which begin after consumers realize their needs or problems. Secondly, an ongoing
search is the process when consumers browse the information for their pleasure and to keep them up-to-date
with new products or current situations of the products market. (Bloch et al., 1986)
Alternative Evaluation
In this stage, consumers have to evaluate their available alternatives that they have received from the previous
stage, information search. (Solomon et al., 2010) Since there are a great number of brands in the marketplace,
consumers will create their own evoke set which consists of brands which are already in their minds. (Jobber,
2007) The brands that are included in the consumers evoke sets will have more opportunities to be selected
by the consumers.
Product Choice
Consumers have to choose one brand among after evaluating their brand choices from the previous stage.
Choosing product choice can be either a simply and quick or a complex stage. (Solomon et al., 2010)
Consumers product choices can be affected by various source of information during the process of decision-
making.

Post Purchase Behaviour and Disposal
Even though the buying decision has finished, consumers often still evaluate their decisions.
This is because they want to feel confident about their choices and to ensure that the product can solve their
problems or satisfy their needs. Jobber (2007) stated in his study that the quality of product and service is a
main determinant in post-purchase evaluation Gender Difference Out of all the factors that influence
customers decision making behaviour, one of the major factor is the gender. It refers to the social
relationship/ roles and responsibilities of men and women, the expectations held about the characteristics,
aptitudes and likely behaviors of both women and men (femininity and masculinity) that are learned change
over time and vary within and between cultures.
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According to Mitchell and Walsh (2004), males and females want different products and they are
likely to have different ways of liking and obtaining these. Gender has an important role in consumer
behaviours. Because, the differences between men and women about expectation, want, need, life-style etc.
reflect to their consumption behaviours (Akturan, 2009:66). Solomon et al (2010) suggests that, products are
sex-typed or androgynous. Sex-typed defines a product that takes on masculine or feminine characteristics.
Put simply, Barbies for girls and Hotwheels for boys. As per the socialization of men and women, women are
perceived to be internally focused and often talk as a way to connect and relate to others, whereas men are
perceived to be externally focused and often view situations as issues to be resolved. They talk to inform
others.
This perception though is generalized and may have lot of exceptions but exceptions do not invalidate
generalizations. For example, there are many women who are taller than the average man, and there are many
men who are shorter than the average woman. But the generalization Men are on average taller than women
is still valid. Similarly, not all men have a strong male brain, and not all women have a strong female brain,
but there are average differences between men and women, and men are far more likely to have the male brain
and women are far more likely to have the female brain. Women are considered as being warm, expressive,
compassionate, and understanding (Broverman et al., 1972; Martin, 1987; Ruble, 1983; Williams & Best,
1990). People feel more positive toward women than men and, also, prefer to like women to men. (Eagly &
Mladinic, 1989) This fashionable paradigm of the differences between men and women are passively accepted
by marketing practitioners around the world. Obvious sex differences exist not just because of genetic reasons,
but are quite often due to cultural variations (Teather 1995). Every marketer today has realized this fact and
hence gender has become one of the major factors and basis of segmenting a market and targeting the
customers. Differences in problem solving between men and women Men and women approach problems
with similar goals but with different considerations. While men and women can solve problems equally well,
their approach and their process are often quit different. For most women, sharing and discussing a problem
presents an opportunity to explore, deepen or strengthen the relationship with the person they are talking with.
Women are usually more concerned about how problems are solved than merely solving the problem itself.
Most men on the other hand are less concerned and do not feel the same as women when solving a problem.
Men approach problems in a very different manner than women. For most men, solving a problem presents an
opportunity to demonstrate their competence, their strength of resolve, and their commitment to a relationship.
How the problem is solved is not nearly as important as solving it effectively and in the best possible
manner. Men have a tendency to dominate and to assume authority in a problem solving process.

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Consumer Behaviour And Lifestyle Marketing

Introduction
Lifestyle marketing is a process of establishing relationships between products offered in the market and
targeted lifestyle groups. It involves segmenting the market on the basis of lifestyle dimensions, positioning
the product in a way that appeals to the activities, interests and opinions of the targeted market and
undertaking specific promotional campaigns which exploit lifestyle appeals to enhance the market value of the
offered product. The Marketing Dictionary of Rona Ostrow and Sweetman R. Smith describes lifestyle as "a
distinctive mode of behaviour centred around activities, interests, opinions, attitudes and demographic
characteristics distinguishing one segment of a population from another. A consumer's lifestyle is seen as the
sum of his interactions with his environment. Lifestyle studies are a component of the broader behavioural
concept called psychographics." Harold W. Berkman and Christopher Gilson define lifestyle as "unified"
patterns of behaviour that both determine and are determined by consumption. The term "unified patterns of
behaviour" refers to behaviour in its broadest sense. Attitude formation and such internal subjective activities
may not be observable, but they are behaviour nonetheless. Lifestyle is an integrated system of a person's
attitudes, values, interests, opinions and his over behaviour.

Demographics, Psychographics And Lifestyle
Demographic variables help marketers "locate" their target market and psychographic variables provide the
marketer with more insight about the segment. Psychographics is, in common parlance, lifestyle analysis or
AIO research. In its most widely practised form, a psychographic study consists of a long list of statements
designed to capture relevant aspects of a consumer, like personality, hinting motives, interests, attitudes,
beliefs and values. When the study becomes oriented towards a particular product, the consumers have to
respond to statements which are selected for the purpose i.e. on products, brands, services, competitive
situations etc.
The demographic and psychographic lifestyle approaches are highly complimentary and work best
together. People hailing from the same sub-culture, social class and even occupation follow quite different
lifestyles. If we can create a fictitious Mrs. Mathur to look at possibly it may be like this: She may choose to
live a "belonging" lifestyle which will be reflected in her wearing conservative clothes, spending considerable
time with her family and participating in social activities. Or she can be an "achiever" marked by an active
personal life and playing hard when it comes to travel and sports. It can be seen that lifestyle depicts the
"whole person" in active interaction with his environment. The lifestyle analysis adds a great amount of
understanding to a typical demographic description. A person buying a new designer shirt may be 34 years
old, married and living in a three bedroom house and having 2 children. The lifestyle analysis would help
marketers to paint a more human portrait to their target market. For instance the "young, upwardly mobile"
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lifestyle group cutting across sub-cultures, social class, occupation etc. is now being increasingly used by
Indian marketers as their market group. This finds its expression in advertising appeals "He loves the feel of
the city... The skyscrapers... The crowds... The pretty faces... And the heedy feeling of being successful...
Above all the freedom of being himself." So says the advertisement for Pantaloon cotton trousers from Manz
Wear. Another advertisements for men's underwear from Bhilwara loudly announces "for the man who plays
many roles-here comes the very best in wearunders via the grand fashion avenues of Paris...Champs Elise".
The behavioural differences between prospects that do not show up in demographic figures come alive in
lifestyle patterns. Lifestyle, analysis leads to more comprehensive and penetrating profiles of how consumers
think and act than may be available from other approaches.

Characteristics Of Lifestyle
Feldman and Theilbar describe lifestyle by the following characteristics:

Lifestyle Is A Group Phenomenon
A person's lifestyle bears the influence of his/her participation in social groups and of his/her relationships
with others. Two clerks in the same office may exhibit different lifestyles.

Lifestyle Pervades Various Aspects Of Life
An individual's lifestyle may result in certain consistency of behaviour. Knowing a person's conduct in one
aspect of life may enable us to predict how he/she may behave in other areas.

Lifestyle Implies A Central Life Interest
For every individual there are many central life interests like family, work, leisure, sexual exploits, religion,
politics etc. that may fashion his interaction with the environment.

Lifestyles Vary According To Sociologically Relevant Variables
The rate of social change in a society has a great deal to do with variations in lifestyles. So do age, sex,
religion, ethnicity and social class. The increase in the number of double income families and that of working
women have resulted in completely different lifestyles in the 1980's in India.

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Influences On Lifestyle
Cultural and societal variables establish the outer boundaries of lifestyle specific to our culture. The
interaction of group and individual expectations and values creates a systematic pattern of behaviour. This is
the lifestyle pattern that determines purchase decisions. When goods and services available in the market are
in tune with lifestyle patterns and values, consumer market reactions are favourable. And purchases that
reinforce these patterns further illuminate these lifestyles. Lazer's lifestyle hierarchy brings out these
interactions.

Approaches To Study Lifestyle
The study of lifestyle is interdisciplinary. It draws on a variety of disciplines such as anthropology,
psychology, sociology and economics. Marketing uses this eclectic approach for segmenting, targeting and
positioning which forms the core of marketing strategy. Because lifestyle refers to the way in which people
live and spend money, consumers psychographic profiles are derived by measuring different aspects of
consumer behaviour such as:
1) Products and services consumed
2) Activities, interests and opinions
3) Value systems
4) Personality traits and self-conception
5) 5 Attitude towards various product classes
Many approaches are available to the study of psychographic variables. One of the ways is to study the
lifestyle variables by an AIO inventory for use in segmenting, targeting and positioning. Another lifestyle
approach is by using VALS typology. We will expand on these concepts now.
Aio Inventories
AIO studies envisage a wide variety of variables and measures the major dimensions shown below:
Activities Interests Opinions Demographics
Work Family Themselves Age
Hobbies Home Social Education
Social events Job Politics Income
Vacation Community Business Occupation
Entertainment Recreation Economics Family size
Club member Fashion Education Geography
Community Food Products City size
Shopping Media Future Lifecycle
Sports Achievements Culture Dwelling
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Let us take a closer look at these variables :
What are activities? Activities indicate how a consumer/family spends his/her/their time.
What are interests? Interests are a family's or consumer's preferences or priorities.
What are opinions? Opinions are how a consumer feels about a wide variety of events and things.
In order to explore an individuals activities, interests and opinions, respondents are given lengthy
questionnaires in which they are asked how strongly they agree or disagree with statements such as:
I would like to become an actor
I usually dress for fashion and not for comfort
A woman's place is in the house
I-often have drinks before dinner
I love the outdoors.
The statements can be general or product-specific. They can be pertaining to individual or
family/household. For instance, the classifications of different type of Psychographic statements for travellers
cheques are given below:
In constructing an inventory of such lifestyle statements researchers first go through market research studies
that might be of help in isolating psychographic variables.
Application of AIO Studies
Studying the lifestyle closely through the AIO inventory of heavy/medium/light users of a product has
been found to be immensely useful for marketers. In the US studies have been done regarding the heavy use
of beer, eye make-up and bank credit cards. When it was revealed that 23% of the people who drink beer
consume 80% of the beverage sold, the heavy beer user became the advertising target of the new campaign.
Willian Wells and Douglas Tigert used an AIO inventory to probe the4tteavy user of eye cosmetics.
Demographic data revealed that such women were young, well educated and metropolitan. But she also
tended to. be a heavy smoker and more inclined than the average woman to make long distance telephone
calls. From the responses to statements, she emerged as one who fantasises about trips around the world, and
as one who wanted a very stylish home. In a study Plummer applied to bank credit card users, males who used
bank charge cards heavily were described as urbane and active with high income level and occupational and
educational achievements. The heavy card user places high value on personal appearance consistent with his
career and lifestyle. He was found to buy at least three new suits a year, to belong to several organisations and
revealed contemporary attitudes and opinions. Thus, a study of personality, lifestyle and social class gives a
more comprehensive consumer profile and not a mere physical description of demographics. Using the AIO
inventory, the Chicago based advertising agency of Needham, Harper and Steers have identified five female
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lifestyle groups and five male lifestyle groups. We have Indian parallels of these types and you may try to
recall the advertisements given alongside in brackets to identify the lifestyle portrayed through these
characters and decide whether they conform.
Female Lifestyle Types
1. Cathy The Contented Housewife (Beena Ganguly In The Dalda Refined Oil Advertisements? )
Cathy epitomises simplicity. She is devoted to her family and faithfully serves them as mother housewife and
cook. She enjoys a relaxed pace and avoids anything which might disturb her equilibrium.
2. Candice-The Chic Subarbanite. (Kitu Gidwani In The Halo Shampoo Advertisement?)
Candice is an urban woman.She is well educated and genteel. Socializing is an important part of her life. She
is a doer, interested in sports and the outdoors, politics and current affairs. Her life is hectic and lived at a fast
clip. She is a voracious reader and there are few magazines she does not read.
3. Eleanor-The Elegant Socialite. (Shyamolie Verma In The Lakme Advertisement?)
Eleanor is a woman with style. She lives in the city because that is where she want to be. She likes the socio-
economic aspects of the city in terms of her career and leisure time activities. She is fashion conscious and
dresses well. She is financially secure and hence not a careful shopper. She shops for status and style and not
for price. She is a cosmopolitan woman who has travelled abroad and wants to.
4. Mildred-The Militant Mother. (As An Exercise, Can You Think Of An Example So As To Draw A
Comparison?)
Mildred is a woman who got married young and had children before she was ready to raise a family. Now she
is unhappy. She is frustrated and vents her frustration by rebelling against the system. Television provides an
ideal medium for her to live out her fantasies.
5. Thelma-The Old Fashioned Traditionalist. (Lalitaji Of The Surf Advertisement?)
Thelma is a lady who has lived a good life. She has been a devoted wife, a doting mother and a conscientious
housewife. Even now, when most of her children have left home, her life is centred around the kitchen. She
lacks higher education and has little appreciation for the arts or cultural activities. Her spare time is spent
watching TV. To make these distilled profiles even more useful for segmenting markets for specific products
aimed at women, the researchers then portrayed these segments in terms of an index of product usage. To
illustrate, the following data on use of cosmetics by the above female psychographic segment reveal very
interesting information. Combining these various pieces of information we can infer that Thelma-the
traditionalist is most likely to use hair colouring, but least likely to use make-up. In contrast a marketer of a
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leading line of cosmetics, say Lakme in India is likely to prefer a target women like Eleanor. Such women are
predisposed to using cologne, lipstick, hairspray, nailpolish and various other forms of expensive make-up.
SIMILARLY THE SUGGESTED MALE LIFESTYLE TYPES ARE
1. Ben-the self made businessman. (Reminiscent of Gavaskar in Dinesh advertisement?)
2. Scott-the successful professional. (Shekhar Kapur in the Digjam advertisement?)
3. Dale-the devoted family man. (Zafer Lalji in the Cadbury advertisement?)
4. Fred-the frustrated factory worker. (Ramu in the Nirodh advertisement?)
5. Herman the retiring homebody. (Dadaji in the Dabur Chyavanprash advertisement?)
LIFESTYLE PROFILES IN INDIAN CONTEXT
In India, one of the agencies is trying to create a psychographic profile of the Indian child based on a sample
of over 4463 in 8 metros and mini-metros. Advertisements are featuring children in advertisements for varied
products and marketers feel that this makes the whole family involved and is consistent with our life
experience. As an outcome of these studies the emerging profiles of the Indian children are given below:
1. 6-7 years: A fun seeker, heavily influenced by the family and by teachers.
2. 8-10 years: A role player, influenced primarily by school and by friends.
3. 11-15 years: An emulator, influenced by the peer group. At this stage, gradual non- acceptance of the
family begins.
4. 16-18 years: Young adults, almost entirely conforming to the group.
SOME OF THE INTERESTING FINDINGS OF THIS SURVEY ARE
Children love to see commercials on TV.
They have their favourite actors and cricketers.
Most of them are adventurous and like trying out new brands.
Children feel savings are necessary.
A very large percentage of children visit religious places.
Another major study using psychographic approach carried out by pathfinders, a marketing research agency in
India covering 10303 working and non-working women aged between 18-45 years with family income of
more than Rs. 350/- p.m. in 36 towns and cities across the country has come up with 8 identifiable types of
Indian housewives. The gregarious hedonist: Found predominantly in the east, she is most likely to speak
Bengali and is intensely extroverted and liberal. She does not believe in sacrificing her life just to keep her
family happy. Self-indulgent and willing to spend money on new products, she is a marketing man's dream.
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The contemporary housewife: She is on the threshold of change. While she has not given up many traditional
values, she aspires for modernity and is least likely to be living in north India. Though she is happier than she
was five years ago. She feels the need to do something more meaningful besides housekeeping. She is
fashion-conscious, but still uses fairness skin creames and her idea of trendy clothes does not go beyond the
sari. The affluent sophisticate: She lives mainly in the west zone, and seems to live by the motto: "Have
money, will spend". She is the highest user of all kinds of consumer products and indulges more in activities-
even simple ones like writing a cheque or using a telephone-which are out of reach of most housewives. She is
comfortable talking to men outside her family circle, and would not mind if her children marry outside the
community. One out of three do some form of exercise and are careful about their figures. The tight-fisted
traditionalist: Leading a sheltered life, she prefers to follow the film stars in her dress habits but is particular
about prices. She restricts her circle of friends to within her community and believes that girls should be
educated especially to enable them to get good husbands. A majority live in north India. The troubled home-
body: Neither a leader nor an emulator, she is largely illiterate and is least exposed to the media. Her three
prized possessions are watches, transistors and bicycles. Fashion takes a back seat and the fate, according to
her, is written in the stars The anxious rebel: Less likely to be found in the south, she would much rather be
working than staying at home. She is anxious, thrifty but discerning in her shopping, though quite willing to
try out new food recipes, and loves to spend on her children and guests. The contented conservative: She is
extremely confident and probably the most efficient householder of all. She is a great optimist, is very
conscious of the family's health and is, by and large, the advertising man's dream she believes that ads are a
great source of information.
The above study confirms the view that the Indian housewife sees herself basically as a traditional
provider. The survey also reveals that an increasing number of urban women are beginning to see themselves
in a more modern context.
Vals System Of Classification
Another widely used lifestyle classification system is the Values and Lifestyle classification
developed by Arnold Mitchell. The VALS system of classification classifies adults (18 +) in the US into
distinctive lifestyle groups. Each group is based on inner psychological needs (values) and behaviour response
patterns (lifestyles) which their values predict. The psychological theory used in VALS draws heavily on
Abraham Maslow's Hierarchy, on Needs.
The VALS theory and database were first applied to markets in 1978. VALS provides a dynamic
framework of values and lifestyles; which helps to explain why people act as they do as social groups and as
consumers. VALS, unlike some other approaches, waves together:
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1. Demographics, 2. Attitudes, 3. Activities, 4. Consumption patterns, 5. Brand preferences. 6. Media
graphics.
The VALS study leads to the identification of four major groups i.e. the need driven (the poor and
uneducated), the outer directed (the middle or upper income class consumer whoselifestyle is directed by
external criteria) and the inner directed (people who are motivated more by inner needs than by the
expectations of others. The fourth segment, called integrated represents individuals who have been able to
combine the best of both outer directed and inner directed values.
The model given below covers all four major types. These groups, in turn, are divided into nine
specific VALS segments.
Among the need driven there are survivors and sustainers. In the case of survivors the purchase
motivation is found to be price dominant. They are also not very knowledgeable' shoppers. The sustainers are
motivated by brand names, guarantees and are generally impulse buyers. The outer directed belongers go for
proven popularity of products. They are brand loyal and careful shoppers. The outer directed emulators buy
products to impress other people and use products to announce status. The achievers buy high tech items.
They want original, top of the line products. They are brand conscious and very loyal. The. inner directed I-
AM-ME's go after fads and do not mind being avantgarde. The inner directed experimental buy products for
the sake of experimenting. They get tremendous amount of satisfaction from the purchase process itself. The
inner directed societally conscious customer wants value for money. He is a simple, frugal person, who seeks
information and reads labels carefully. Apart from the purchase motivations described above, the
characteristics of the nine VALS segments identified by the SRI international study can be summarised as
follows:
1. SURVIVORS: are disadvantaged people who tend to be despairing, depressed and withdrawn.
2. SUSTAINERS: are disadvantaged people who are struggling to get out of poverty.
3. BELONGERS: are people who are conventional, conservative and unexperimental; who would rather
fit in than stand out.
4. EMULATORS: are upwardly mobile and status conscious; they want to make it big in life.
5. ACHIEVERS: are leaders who make things happen, work within the system and enjoy the good life.
6. "I-AM-ME: are people who are typically young, self-engrossed and are given to whims.
7. EXPERIMENTALS: are people who pursue a rich inner life and want to directly experience what life
has to offer. 27 Consumer Behaviour and Lifestyle Marketing
8. SOCIETALLY CONSCIOUS PEOPLE: have a high sense of social responsibility and want to
improve conditions in society.
9. INTEGRATEDS: are people who have fully matured psychologically and who combine the best
elements of inner directedness and outer directedness.
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Vals-2 Classification
In a more recent development on lifestyle and value system. SRI now offers findings from a very
comprehensive study, termed the VALS 2. The VALS 2 typology draws heavily on Maslow's need hierarchy
and tries to explain the lifestyle orientation of the various segments based on the values sought by each of
them in their life. VALS 2 typology classifies the American population into 3major consumer groups-the
principle oriented, the status oriented, and the action oriented. These are then further sub-divided into eight
distinctive lifestyle segments. Figure 3 below shows the VALS 2 segmentation segments. The three major
segments as noted above are defined in terms of self orientations of people. The principles oriented represent
consumers whose choices are governed by their beliefs rather than their need for other peoples, approval. The
choices of status oriented consumers, on the other hand, are directed by the action, approval and opinion of
other people. The action oriented consumers are those who are motivated by a need for social or physical
activity, variety and risk bearing. The eight sub-divisions that these major self orientations have been divided
into also differ in terms of their resources. Resources in this typology have been defined as physical,
psychological, and demographical factors that become enabling variables in consumer's choice making
behaviour. A description of the lifestyles and brief socio-economic profile of all the eight sub-segments of
VALS 2 is given below.*
The principle oriented people have been divided into 2 classes, the fulfilleds and the believers.
Believers are conservative, conventional people with concrete beliefs and strong attachments to traditional
institutions: family, church, community, and the nation. Many Believers possess moral codes that are deeply
rooted and literally interpreted. They follow established routines, organized in large part around their families.
and the social or religious organizations to which they belong. As consumers, they are conservative and
predictable, favoring American products and established brands. Their education, income. and energy are
modest but sufficient to meet their needs. Fulfilleds are mature, satisfied, comfortable, reflective people who
value order, knowledge. and responsibility. Most are well educated, and in (or recently retired from)
professional occupations. They are well-informed about world and national events and are alert to
opportunities to broaden their knowledge. Content with their careers. families. and station in life, their leisure
activities tend to center on their homes. F'u11illech have a moderate respect for the status quo, institutions of
authority, and social decorum, but are open-minded about new ideas and social change. Fulfilleds tend to base
their decisions on strongly held principles and consequently appear calm and self-assured. Although their
incomes allow them many choices, Fulfilleds & are conservative, practical consumers: they are concerned
about functionality, value, and durability in the products they buy.. The status oriented people have been
further subdivided into 4 classes, the actualizers, the achievers the strivers and the strugglers. Actualizers are
successful, sophisticated, active, "take-charge" people tenth high self-esteem and abundant resources. They
are interested in growth and seek to develop, explore, and express themselves in a variety of ways-sometimes
guided by principle, and sometimes by a desire to have an effect to make a change. Image is important to
Actualizers, not as evidence of status or power, but as an expression of taste, independence, and character.
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Actualizers are among the established and emerging loaders in business and government, yet they continue to
seek challenges. They have a wide range of interests, are concerned with social issues, and are open to change.
Their lives are characterized by richness and diversity. Their possessions and recreation reflect a cultivated
taste for the finer things in life. Achievers are successful career and work-oriented people who like to-and
generally do-noel in control of their lives. They value structure. predictability, and stability of over risk,
intimacy, and self-discovery. They are deeply committed to their work and their families. Work provides them
with a sense of duty, material rewards, and prestige. Their social lives reflect this focus and are structured
around family, church, and business. Achievers live conventional lives, are politically conservative, and
respect authority and the status quo. Image is important to them. As consumers, they favor established
products and services that demonstrate their success to their peers. Strivers seek motivation, self-definition,
and approval from the world around them. They are striving to find a secure place in life. Unsure of
themselves and low on economic, social, and psychological resources. Strivers are deeply concerned about the
opinions and approval of others. Money defines success for 5'trirer, who don't hate enough of it and often feel
that life has given them a raw deal. Strivers arc easily bored and impulsive Many of them seek to be stylish.
They emulate those who have more impresses e possessions, but what they wish to obtain is generally
beyond their reach. Strugglers' lives are constricted. Chronically poor, ill-educated. Ion-skilled, without
Strong social bonds, aging, and concerned about their health they arc often despairing and passive. Because
they are so limited, they show no evidence of a strong self-orientation, but are focussed on meeting the urgent
needs of the present moment. Their chief concerns are for security and safety. Strugglers are cautious
consumers. They represent a very modest market for most, products and services but are loyal to favorite
brands. The action oriented segment comprises of two subsegments of Experiencers and Makers. Experiences
are young, vital, enthusiastic, impulsive, and rebellious. They seek variety and excitement, savoring the new,
the offbeat, and the risky. Still in the process of formulating life values and patterns of behavior, they quickly
become enthusiastic about new possibilities but are equally quick to cool. At this stage in their lives, they are
politically uncommitted, uninformed, and highly ambivalent about what they believe. Experiences combine an
abstract disdain for conformity and authority with an outsider's awe of others' wealth, prestige, and power.
Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid
consumers and spend much of their income on clothing, fast food, music, movies, and video. Makers are
practical people who have constructive skills and value self-sufficiency. They live in a traditional context of
family, practical work, and physical recreation, and have little interest in what lies outside that context.
Makers experience the work by working on it-building a house, raising children, fixing a car, or canning
vegetables-and have sufficient skill, income, and energy to carry out their projects successfully. Makers are
politically conservative, suspicious of new ideas, respectful of government authority and organized labor. but
resentful of government intrusion on individual rights. They are unimpressed by material possessions other
than those with a practical or functional purpose (e.g. tools, pickup trucks, or fishing equipment).
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Applications Of Vals Classification
Marketers have put to good use this concept which is based on the idea that individuals pass through a
number of developmental stages" with each stage affecting the person's attitudes, behaviour and psychological
needs. As the preceding portraits have revealed, VALS can be used to
1. Identify target market characteristics and usage.
2. Guide executional and strategic approaches.
3. Identify key media for target groups.
4. Guide merchandising efforts.
The new advertising appeals being tried for products in India and the convenience oriented retailing
emerging in the country namely fast food restaurants, speciality shops for apparel as well as other products,
etc. are representative of the marketing thrust resulting from targeting at selected lifestyle groups for
nichemanship.
Applications Of Lifestyled Marketing
The most striking uses of lifestyle concept and allied research have been made in positioning of new
products, repositioning of existing products, developing new product concepts and creating new product
opportunities in specific fields. In congruence to the product concept chosen, lifestyle research is utilised for
selecting media, formulating media and promotion strategies and improving retail performance. Lifestyle
concept is also utilised as a framework for presenting research recommendations, since it is capable of
offering to the marketers, potraits of target group expressed in an uncomplicated manner.
Positioning Of New Products
Positioning comprises finding the most profitable niche for a new product in terms of target: market. Lifestyle
research, for example, an AIO portrait, of heavy users for any given consumer product not only tells us how
old they are, where they live and to what socio-economic group they belong, it also tells us what products are
they likely to buy, what their interests and opinions are. This provides an unusually rich body of data for use
in marketing decisions related to the positioning of a new product. Decisions concerning the precise target
group at which the product is to be aimed, the product image to be designed, the media vehicle and the type of
promotion strategy to be taken so that the complete product package is in conformity with a particular
lifestyle/styles.
Repositioning An Old/Existing Product
Sometimes existing products may sell well below their forecast potential or the company may
discover a new, more profitable niche, nearer to the core market where it may now want to position the
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product. Repositioning is often a contingency planned for in the new product development process, primarily
as a remedial measure. Generally in markets where the competitive activity is high, the need while positioning
the product for the fixed time is to get a foot hold in the market. After gaining market penetration, establishing
distribution and creating a certain degree of market acceptability, the manufacturer may, through
repositioning, or a series of repositionings move the product closer to the core market. Lifestyle marketing
strategies help considerably in reducing the amount of `market grouping' that repositioning may entail. Further
in case of existing products, the market offering is physical instead of merely conceptual. The physical
attributes are difficult to change completely, the development and original positioning costs have already
become sunk costs. Repositioning then becomes a good strategy. Lifestyle repositioning would involve
moving the product closer, to the psycho graphic profile of the core market segment, by altering its image or
some of its attributes to suit the lifestyle of the core segment. Recent examples of repositioning the product
have been the efforts of Johnson and Johnson Ltd., to move their baby shampoos and lotions to the adult
market by changing the promotional and packaging strategy of the product to appeal to the growing "natural
healthy look" lifestyle.
Mahindra & Mahindra are currently repositioning their Jeep, by aiming it at the lifestyle of the
successful professional who prefers a rugged lifestyle instead of a sophisticated one, is the outdoor type and
values his comfort.
Developing New Product Concepts
Study of existing market segments and analysis of their needs have typically been used to
conceptualise on new product opportunities. Traditionally, demographic segmentation, or standard consumer
classification of major groups like the educated youth, the young collegiate, the urban housewife etc. have
been used to define and study the segments. Lifestyle studies on the other hand can be used to complement the
demographic studies in terms of market needs, customer and non-customer attitudes, the opinions related to
product usage and the interests of the target customers, to be able to define the product attributes which may
be congenial to certain lifestyles. For example users of fluoride toothpaste may have different expectations
from it. Some use it as a medicinal aid to oral hygiene; others feel it should give cosmetic benefit. Even
among these who use it as a medicine, there are two sets of expectations, some believing that a medicine
ought to taste like a medicine while others strongly feel that just because the fluoride toothpaste has a
medicinal ingredient, it need not taste like one. In developing the concept of a new fluoride toothpaste, you
will find that a complete inventory of Attitudes, Interests and Opinions of the consumers will help you in
defining the attributes of the final product, as you can define the requirements of the different lifestyle
segment and then conceptualize as to which segment you wish to aim the product at.

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Creating Promotional Strategies
Lifestyle information is helpful in developing promotional strategies in a number of ways. It gives the
decision maker a much more complete profile of the type of consumer who will be at the receiving end of the
communication. Lifestyle data suggests the style of language, the tone of voice and even the appeal that may
be utilized to reach that kind of consumer. Further, lifestyle information indicates how the product or service
fits into peoples lives, how they feel about it and how they may be using the product or service to
communicate with others. This information can be utilized by the marketer to decide upon the kind of image
he wants to imbue the product with. The Indian marketing scenario, especially for consumer durables, is
becoming fiercely competitive. Hence companies are realizing that merely highlighting the attributes of their
product or of the company in terms of demographic or geographic dimensions is not enough to be successful
in the market place. Marketers have come to appreciate that buying behaviour is influenced by the consumer's
lifestyle. Companies dealing in cosmetics, apparel, packaged food etc. are seeking opportunities in lifestyle
segmentation. Stores, especially those dealing in apparel, have started keeping merchandise which goes with a
particular lifestyle. The Bata-North star advertisement aiming at the Young, western oriented, fun loving
crowd is an example of this approach. Further, the fact that Bata Ltd. has expanded its product range to and
also a full range of active sports wear under "Power", bring out their attempt at lifestyle marketing. The
growing westernization of youth in our country and the resulting change in lifestyle is responsible for the ever
increasing demand for jeans in the country. Denim as a lifestyle-fabric is fast gaining acceptance in the
country, transcending demographic segments and marketers are making use of this phenomenon.

CONCLUSION
Consumer behaviour is still a young discipline and most of the research now available has been
generalised only during the past fifteen years or so. Innovations such as the lifestyle concept and AIO research
represent ways to move the study of consumers away from isolated, often unrelated projects towards broader
integrated systems and research techniques.
Post-purchase decision Processes and Behaviour

Once the buyer makes a decision to purchase a value proposition, there can be several types of additional
behaviour associated with that decision.
Four activities are of primary importance:
1. Where to purchase (store choice)
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2. How to pay (e.g. credit card/store credit/cash)
3. Decisions on delivery and installation
4. Decisions on additional products/value acquisitions (products related to the item purchased).
Shopping Decisions
Fully Planned Purchase
Partially Planned Purchase.
(NB the Purchase may in fact also have been unplanned at the time of purchase)

The Shopping Experience
The Social Experience of Shopping Shopping with others
The Shopping Situation
Physical and Social Surrounds
The Status Experience
The Thrill of the Chase
Sharing Common Interests
A Meeting Location
Shopping as Participative Theatre
Role Playing
The Heroes
The Cast/Performance Team Characters to see
The Stage
Mall/Shopping Centre Image
Store Image Atmosphere
The Performance
Diversion
Social Activity
Learning
Payment
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One of the post decision is how the acquisition will be financed. Potential options include:
Lay-by
Credit card
Cheque
Lease
Hire purchase
Rental
Store credit
Bank loan
Each is a potentially an important decision which may affect the buyers overall purchase choice
Decisions on Value Acquisition
Two important post-purchase decisions to be made relate to delivery and installation.Not all products require these sort of
decisions and some do not offer the options.
Delivery
1. Can the buyer take immediate possession and take it home?
2. Can delivery be organised by the seller?
3. When can delivery occur?
Installation
The value proposition must be made ready for the buyer to use. Televisions, hi-fi units, and air conditioners, for example,
all must be carefully set up if the consumer is to find satisfaction from their use. Another element of value acquisition
set-up and use concerns instructions
Marketing Implications
It is also important for the marketer to understand the users consumption system, that is, the manner in which the
consumer performs the total task of whatever he or she is trying to accomplish when using the value acquisition, whether
it is washing clothes or cooking a meal.
Decisions on Additional (Related) Products/Value Acquisitions
A buyer of one item becomes a candidate for all sorts of options and related value acquisitions.
Retailers have learned that the profits are often in the optional extras that a buyer purchases, rather than in the original
product itself.
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Post-Purchase Behaviour
Post Purchase Behaviour is what occurs after the value proposition becomes the Value acquisition.When the buyer
become the user/consumer.Some important marketing implications flow from buyers post-purchase decisions.
Post-Purchase Behavior
PPB deals with actual rather than potential customers It has an impact on future sales.Information learned can be used to
improve products and services, undertake better targeted promotions, and design more effective strategies to keep actual
customers and attract new ones.
Product Consumption
Consumption is the possession and/or use of goods and services and the benefits they deliver
Consumption situation
Physical context: time and place of consumption
Social context: the presence of others
Consumption episode: the set of items belonging to the same event and occurring in temporal proximity
Consumption system: a bundle of goods and services that are consumed over time in multiple episodes.
How is the product used?
How much is consumed at any one time?
Post-purchase Dissonance
Consumers may become dissonant over a purchase decision. Cognitive dissonance occurs as a result of a discrepancy
between a consumers decision and the consumers prior evaluation. This theory was derived from two basic principles:
(1) dissonance is uncomfortable and will motivate the person to reduce it and
(2) individuals experiencing dissonance will avoid situations that produce more dissonance.
Assessment Results From Dissonance
Dissonance is doubt or inconsistency between the buyers perception of the state he or she wants to exist and the
state that actually exists. We purchase something and we expect it to work over a reasonable period of time. If it does not,
then we have doubts about our purchase.
Dissonance disrupts the buyers equilibrium with this doubt causing the person to seek relief. This relief is
assessment, and it is the direct result of dissonance.
Dissonance Is Normal
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Dissonance is a mental state because the doubt exists in the mind. There is no question that dissonance occurs in a great
many, if not all, buying situations. We consider dissonance to be normal after a decision or product selection but not
inevitable. It may occur for no other reason than that the buyer wants to check the results of the decision to be sure.
Factors That Cause Dissonance
There are several factors that make dissonance highly likely both before and after the purchase.
First, there is price or total payment cost.
Second, there is psychological importance.
Third, there is product performance.
Fourth, there is the number of rejected alternatives.
Fifth is the perceived performance of alternatives rejected.
Sixth, the credibility of the source of new information affects the amount of dissonance it causes.
Purchase-Associated Cognitive Dissonance
It occurs at time of commitment.
It is the feeling of uncertainty about whether the right choice is being made.
There is no finite time of possession or use requirement for it to occur.
Factors that Affect Cognitive Dissonance
Importance of the purchase decision
Consumers tendency toward anxiety
Finality of the purchase decision
Clarity of the final purchase choice

Conditions Leading to Dissonance
Dissonance is likely to occur under the following conditions:
1. Once a minimum threshold of dissonance tolerance is passed.
2. The action is irrevocable
3. Unselected alternatives have desirable features.
4. There are several desirable alternatives.
5. Available alternatives are quite dissimilar in their qualities (there is little cognitive overlap).
6. The buyer is committed to his decision because it has psychological significance.
7. There is no pressure applied to the consumer to make the decision.
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Types of Consumption Situations
Extensive marketer control
Limited marketer control
No marketer control
Consumption Norms
Consumption Rituals

Types of Consumption Situations
Ritual Consumption
Special and Ordinary Consumption
Special consumption

Ordinary consumption
Types of Consumption Situations
Compulsive Consumption

Post-purchase Evaluation
There are several functions which this stage serves.
First, it serves to broaden the consumers set of experiences stored in memory.
Second, it provides a check on how well he is doing as a consumer in selecting value acquisitions, stores, and so
on.
Third, the feedback that the consumer receives from this stage helps to make adjustments in future purchasing
strategies.
Positive Post-purchase Behaviour
Positive evaluation
Loyalty develops over time through positive market experiences
Loyalty phases:
Cognitive (based on beliefs only)
Affective (like, based on repeated satisfying use)
Conative (behavioral intention loyalty)
Action (strong readiness to act)
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Buyer/Consumer Satisfaction/Dissatisfaction
Satisfaction is an important element in the evaluation stage.
Satisfaction refers to the buyers state of being adequately rewarded in a buying situation for the sacrifice he or she has
made.
Adequacy of satisfaction
Satisfaction/dissatisfaction isnt an emotion,

Expectation and Satisfaction
Product experiences can be classified into three types based on the degree to which consumer expectations are fulfilled
(confirmation) or not (expectancy disconfirmation):
Simple confirmation:
Positive disconfirmation:
Negative disconfirmation:

Buyer/Consumer Satisfaction/Dissatisfaction
If satisfaction perceptions are less than expected, then negative disconfirmation is said to have occurred.
Satisfaction Versus Dissatisfaction
The level of satisfaction or dissatisfaction we experience depends upon how well the products performance meets our
expectations
A finite time period of possession is necessary to determine satisfaction
Satisfaction is not easily measured because:
It means different things to different people
The level of satisfaction can change over time
Satisfaction can change when consumer needs and preferences change
Satisfaction may include a social dimension (the experience of others may add or subtract from our own satisfaction)
Categories of Satisfactory Performance
Ideal:
Equitable:
Expected:
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Relationship Between Performance and Satisfaction
Aspects of performance related to satisfaction:
Objective performance
Affective

Expectations
Consumers form certain expectations prior to the purchase. These expectations may be about:
5. the nature and performance of the product (
6. the costs and efforts to be expended before obtaining the direct value acquisition benefits, and
7. the social benefits or costs accruing to the consumer as a result of the purchase.
Disconfirmation of Expectations
Instead, a modifying variable known as disconfirmation of expectations Such disconfirmation can be of two
varieties:
a) a positive disconfirmation,
b) a negative disconfirmation.
Confirming Expectations
When the purchase confirms the consumers expectations, reinforcement takes place.
When expectations are not confirmed, however, cognitive inconsistency develops and the consumer will likely
reduce the dissonance by evaluating the product (or store) somewhat negatively.
Unrealistic Expectations
Consumer expectations may be set unrealistically high, with resultant dissatisfaction when they are not fulfilled,
as when the product breaks down for some reason.
In order to reduce this occurrence, products should be carefully developed with the consumer in mind. A clear
understanding of how the value acquisition will be used and how it fits into the consumers lifestyle is necessary.
Managing Expectations
Expectations are formed by many uncontrollable factors, from the experience of customers with other companies and
their advertising to a customers psychological state at the time he or she receives service.
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Strictly speaking, what customers expect is as diverse as their backgrounds, education, values, and experiences.
Managing Expectations
Customer expectations are dynamic and shift over time. Over-promising and under-delivering will result in
dissatisfaction.
Customers want the product to be delivered as promised explicitly, as in a tender submission, or less
explicitly via mass media advertising or promotion material.
Zone of Indifference
Discussing customer satisfaction issues would be incomplete without reference to the zone of indifference.The
extent to which customers are willing to accept some degree of variation is referred to as the zone of indifference

Expectation Types
Desired (or- ideal) expectations
Equitable or deserved expectation
Predictive expectations
Adequate (or minimum tolerable) expectations
Fuzzy expectations
Explicit expectations
Implicit expectations

Closing the Gap Between Expectation and Performance
Marketers must understand consumer expectations and the extent to which purchases satisfy them.
Marketers must match product benefits to consumer needs:
Needs of target market and the benefits of the product must be a good fit.
Communication must clearly describe both the products benefits and the way it is to be used
Do not raise consumer expectations beyond the actual benefits that the product offers.


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Normative Standard Definition
This is evaluating satisfaction on the basis of whether or not the customers believed that they were treated in
accordance with how they believe they should be treated. Some people have higher expectations of treatment in any
given service situation.
Normative Deficit Definition
Procedural Fairness Definition
Measuring Customer Satisfaction
The most common means of measuring client satisfaction:
* asking customers;
* investigating complaints;
* evaluating service attributes;
* asking customers what will increase their satisfaction;
* asking what is wrong or could be improved.

The difficulty that researchers have with measuring client satisfaction is that customers are not always able to
define their satisfaction levels.
Moreover, customers more often than not do not know if they are satisfied. They can assume that they are
satisfied because they use the service frequently, but this may not be the case.
Reducing Dissonance
What consumers do:
Try to find ways to reinforce the desirability of the choice made
Try to make the losing choices look weaker
Try to lessen the importance of the choice decision than they had originally thought

What marketers must do:
Match their products with the appropriate target consumers
Offer clear communication, return policies, warranties, in-store demonstrations
Make salespeople available to answer questions


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Negative Post-Purchase Behaviour
Passive:
Active:

Types of negative post-purchase behaviour:
Negative word-of-mouth
Rumour
Complaint behavior (no action, private action, public action)
Marketers Often Create Dissonance
That is to try and suggest to a prospect that something could be better
Dissonance Reduction
There are several major ways in which the consumer strives to reduce dissonance. He or she may:
1. change his or her valuation of the alternative,
2. seek new information to support his or her choice, or
3. change his or her attitudes.
4. Changing Value Acquisition Evaluations
5. Seek New Information
6. Change His Or Her Attitudes
7. Individual Responses to Dissatisfaction
The individual buyer is not helpless when dealing with frustrations toward organisations.
The Buyer Can Engage In Three Types Of Behaviour When Dissatisfied.
These actions can be summarised as:
Take no action.
Trade elsewhere.
Contact organisation representatives.
Take legal action
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Take No Action
A dissatisfied buyer may choose to take no action against the offending firm, simply deciding that confronting the firm
would not be worthwhile.
Trade Elsewhere
A problem with this course of action is that it seldom works for individuals. Few businesses miss one or two customers.
Even so, buyers may obtain considerable satisfaction from withdrawing their trade.
Contact Organisation Or Representatives
Typically, customers take their complaints either to the salesperson or department manager where the dissatisfaction
occurred. If the problem is a defective product, discourteous salespeople, or something similar, this is a good place to
begin.
Final Actions
Take the matter up with Government Departments
Take the Matter to Interested Media
Take Legal Action
If all else fails, the customer has the right to take legal action against the firm.
Selling Misery To Others
Some buyers use the technique of selling their own misery to others as a means of reducing dissonance.
Marketer Actions to Reduce Dissatisfaction
Build realistic expectations
Demonstrate or explain product use
Stand behind the product
Encourage customer feedback
Periodically make contact with customers