INDIVIDUAL DECISION-MAKING IN CONSUMER

BEHAVIOUR (in case of automobiles)

MOTIVATION-
The car allows consumers to convert their sub-concious urges to destroy & their
fear of death.-two key forces in the human psyche- into reality.eg- “step on it”-
stems from the desire to feel power.

“i just missed that car by inches”-reflects the desire to play with danger.

Here aggressive motives function for driving cars in promoting the superiority of
its gasoline products.

Aspects of the product Intrinsic needs Extrinsic needs

Brand Reassurance(perceived Symbolic association-
equity(associated) risk) Scorpio for family tour,
status
Special features Variety-seeking To encourage word of
tendencies mouth of one-self-Bolero

GOALS-

Generic goals- a person want just a 4-wheeler for personal transportation.

Product-specific goals- a person wants to have a 10seater 4-wheeler to go with

family.

The selection of goals- A person want Mercedes as to travel with family along
with to show the high status.

MOTIVES-
Primary motives- purchasing a new car to replace old-modelled previous car,

Secondary motives- purchasing tata indica instead of maruti Zen.

Concious motives- Purchasing Mahindra Armada for rough ride,

Dormant motive- purchasing a Ferrari sport car for unconscious desire of

becoming a F1 champion.

Rational motives- Consumers behave rationally by considering carefully all

alternatives & choosing those that give the greatest utility.

Eg- a person purchases santro not Nano for having greater protection, mileage,
with price conciousnes

Emotional motives- Showing quality consciousness than price concousness.

Eg- a person buying Bolero not buying Tata indica for showing higher status.
Dynamics of Motivation-
Needs are never fully satisfied- a person is purchasing Tata nano for only
personal transportation, but it is not having protection & other criterias.so he
purchases Zen, then for family tour quails.

New needs come when old needs are satisfied- a person 1st purchases
santro then again purchases bolero for family tour.

Success & failure influence goals (level of aspiration)-

Substitute goals- One purchasing indica not purchasing bolero dur to price
concousnes.

Frustration- a person is tired travelling by public transportation so he

purchases a 2-wheeler.

Multiplicity of needs & variation of goals- for personal transportation,

proper protection, comfort, greater mileage a ;person buying a Santro.

Along with all these needs, for showing higher status, for family tour one
purchasing BMW.

Defense mechanisms-People sometimes adopt this to protect their egos

from feelings of failure when they don’t attain goals.The mechanisms includes-

1) Regression-

2) Withdrawal-

3) Projection

4) Day-dreaming-

5) Identification-

6) Repression-

7) Agression-

8) Rationalisation

Arousal of motives- Arousal of a specific need in a is a particular need

may be caused by internal stimuli in individual’s physiological or cognitive
process.

Physiological arousal- Tata Nano as a 4-wheeler for only personal

transportation.

Emotional arousal- purchasing Benz for showing higher status

Cognitive arousal- purchasing Wagnor for showing status & price-

conciousnes.
 Maslow’s hierarchy of needs-

Role of Motivation- Needs become a motive when it is aroused to a

sufficient level of intensity.

1) Biogenic needs- For protection & personal transportation one buying low
price car.

2) Psychogenic needs- to satisfy some psychological states of tension, & for

recognition one buying Qualis- a high price car.

Various needs as motives-

1) utilitarian needs- Sumo, scorpio are purchased to travel various places

with family.

2) Hedonic/ experiential needs- Car manufacturers design car doors to close

doors with a satisfying sounds.

Buying motives

Product buying motives Patronage

buying motives

Purchasing I20 seeing its fabulous design, emotional

Rational

Price, dimension, colour etc.

 PERSONALITY
It is inner psychological characteristics that both determine & reflect how a
[person responds to his or her envioronment.

SOME FACTS-

Personality reflects individual differences-

Personality is consistent & enduring-

Personality can change-

THEORIES OF PERSONALITY-

1) Fraudian theory- id, superego, ego influence buying behaviour. Its also
called psychoanalytic theory of personality. Personality is primarily
instinctual & sexual in nature,

Id- to buy a nano for just personal transportation.

Super ego- to buy a royls royal to show high status.

Ego- to buy indica for showing status as well as price consciousness.

2) Neo-freudian theory- Social relationships are fundamental to the formation

& development of personality.

.) for complient individual-

.) for aggressive individual-

.) for detached individual-

3) Trait theory- Focusses on the measurement of personality in terms of

specific psychological charactewristics ca;lled traits.

.) consumer innovativeness

.) consumer materialism

.) consumer ethnocentrism-

CONSUMER DOGMATISM- personality trait that measure the degree of rigidity

(vs openes) that individuals display toward unfamiliar & toward information
that is contrary to their own established biliefs.

COGNITIVE PERSONALITY FACTORS- Cognitive influence consumer behaviour

1) Need for recognition

2) Visulisers vs verbalisers
3) Interpersonal influence-

4) Consumer materialism to compulsive comsumption-

PERCEPTION
The difference between reality & expectation is perception.

Webber’s law-

1) Perceived price-

2) Perceived quality-

3) Perceived price-quality relationship

Elements of perception-

Perceptual selection-

STIMULI- consumer’s previous experience-

Their motive-

Nature of stimulus-

Expectation

Motives-

Selective perception-

Selective exposure

Selective attention

Perceptual defense

Perceptual blocking-
Perceptual interpretation

LEARNING
It is the process by which individual acquire the purchase & consumption
knowledge & experience that they apply for future-related behaviour.

Motivation-

Clues-

Response

Reinforcement- Behavioral learning & cognitive learning

BEHAVIORAL LEARNING- Stimulus Learning

CLASSICAL CONDITIONING
INSTRUMENTAL/OPERANT

CONDITIONING

Pavolian model analogous model

COGNITIVE ASSOSIATIVE LEARNING-

STRATEGIC AppLICATION OF CLASSICAL CONDITIONING-

• Repeatation-

• Generalization-

• Product form & category extention-

• Family loading

• Stimulus discrimination

• Reinforcement of behaviour- Positive reinforcement

Negetive reinforcement

STRATEGIC APPLICATION OF INTRUMENTAL THEORY-

Customer satisfaction-
 Consumer involvement & passive learning-

ATTITUDE
It is a learned predisposition to behave in a consistently favourable or
unfavourable way with respect to a given objects.

SOME FACTS-

1) Attitudes are a learned predisposition

2) Attitudes have consistency

3) Attitudes occur within a situation-

4) Linkages in attitude formation-

STRUCTUA+RAL MODEL OF ATTITUDE-Tricomponent attitude model

Multi attribute attitude model-

1) Attitude toward object model

2) Attitude toward behaviour-

3) Theory of reserved action model

Consumer Decision Making Influence by Group

Except individual decision making process there is another consumer behaviour

influence by group like family,society,reference group,geo-demographic cluster
etc.

1. The elaboration is as following influenced by family household.

Married couple may not go for a Scorpio or Quailis or any other 10sitter
car.They prefer WagonR,Omni.

Nuclear family :Married couple with children may not go for

2wheeler.They will like to prefer Esteem,Indica kind of 6sitter.

Extended family : While going out with joint family,one will prefer
Scorpio,Sumo like 12sitter.

Non-family Household: Unmarried couple will prefer 6sitter.

Friends or roommates : While going out together they may not prefer
Sumo,Scorpio.

2. Consumer Socialization of children

One child was seeing his favourite actor in a movie with a car.So he insisted
to have that 4wheeler from his parents.

3. Suitable family lifestyle

There can be a joint family but going out separately may prefer Indica,Zen
type of 6sitter.

4. Reference Group

A person previously had a Nano car but while working in a corporate firm
where most people come by Mercedez or Benz ,he was fascinated to high price
stylish cars like Royals,BMW etc & eventually decided to buy.
A family stays in an apartment and there most of the family use high price
stylish cars,so that family may have to go for Ford,Ciesta,Qualis kind of high
price car for prestigious issue.

5. Referrent Person

A boy is a fan of Shahrukh Khan, so he can go for Santro car endorsed by by

SRK.