Professional Documents
Culture Documents
Background
A definition of consumer behaviour
the decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods and services.
.contd
BS disciplines which have greatly contributed to our understanding of consumers are : Psychology : study of the behaviour and mental processes of individuals Sociology : study of the collective behaviour of people in groups Social psychology : study of how individuals influence and are influenced by groups Economics : study of peoples production, exchange, and consumption of goods and services Anthropology : study of people in relation to their cultural and racial heritage
(..contd)
Consumer behaviour involves
A mental decision process Physical activity Actual act of purchase is just one stage in a series of mental and physical activities that occur during this phase Some of these activities preceded the actual buying, while others follow it Consumption system who, how, when, where. All these factors capable of influencing the adoption of products or services
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Primary psychological processes involved are Motivation Perception Learning Memory
We shall study these in details as we go along.
Personal Factors (2 h)
Demographics
Age stage in life cycle : people buy different goods and svcs over a lifetime Gender differing needs, preferences Occupation influences consumption patterns; eg factory workers outfit vs co directors apparel, software engineer vs construction engineer Education fashions mindset, shapes choice process and preferences, can catalyse income
Economic Status
Buying behaviour vis--vis buy-not-buy or product choice greatly affected by economic circumstances Income : level, stability, time pattern personal income, disposable income, discretionary income The problem with specification of necessities and the usefulness of the concept of subjective discretionary income (SDI)
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Dimensions of involvement Antecedents : person, stimulus/object, situations a persons needs, values, interests, etc and closeness of the product (or stimulus) to these, in relation to the use (situational context) of the product govern involvement Properties of involvement Intensity : degree > high or low, ie how much a consumer will invest in decision making for purchase Direction : focus or target < strong influence of antecedents; eg women and perfume, men and cars Persistence : length of time consumer remains engaged; eg bird watchers, sport fishing, auto enthusiasts
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High involvement decision making Low involvement decision making Flowing from the above : Central route (to processing) in which cognition and extensive critical evaluation leads to attitude formation followed by behaviour Peripheral route, in which cognition, at low attention, continues with weak brand knowledge and interest, without developing strong attitude about any of the specific brands; thus mere familiarity or association with non-central cues, like good shop ambience or salesperson, leads to decision Marketing strategies are tailored to account for these
Psychographics
Personality A set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli Traits such as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability Major Personality Theories Psychoanalytic Personality Theory id, ego, superego; the reality principle, defence mechanisms (repression, projection, identification, reaction formation) Social Theories Trait and Factor Theories Can be a useful variable in analyzing consumer brand choices
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Brands also have personalities, and consumers are likely to choose brands whose personalities match their own Brand personality : the specific mix of human traits that may be attributed to a particular brand; eg one such identification sincerity (down-to-earth, honest, cheerful) Excitement (daring, spirited) Competence (reliable, intelligent) Sophistication (upper-class and charming) Ruggedness (outdoor-type and tough)
Ruggedness Levis, competence BBC, LH
Lifestyle
A persons pattern of living as expressed in activities, interests, and opinions Lifestyle portrays the whole person interacting with his or her environment Broadly, two segments : money-constrained (Wal-Marts target thru low prices bringing high sales) or timeconstrained (breakfast on feet bagels rather than cereals) Lifestyle segmentation further into brand-user, productuser, situation segmentation.. AIO (activity, interest, opinion) analysis
Self-concept
Self-image > a persons perception of himself which includes his physical being, other characteristics such as strength, honesty, and good humour in relation to others, and even extending to include certain possessions and his creations How one views oneself actual self-concept How one would like to view oneself ideal self-concept How one thinks others see one others self-concept Affects publicly consumed products as compared to privately consumed goods; congruence with actual or ideal self-concept
Interpersonal Factors
Culture
Culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and material objects and possessions acquired by a group of people in the course of generations through individual and group striving. Culture is a collective programming of the mind that distinguishes the members of one group or category of people from another Culture consists of material and non-material components : Material culture: consists of all the physical substances that have been changed and used by people, such as tools, automobiles, roads, and farms; in the context of markets and CB, artifacts of material culture would include all the products and services which are produced and consumed, eg Big Bazaar, Spencers Non-material culture: includes the words people use, the ideas, customs, and beliefs they share, and the habits they pursue; eg the way in which consumers shop in supermarkets, our desire for newer and better products, and our responses to the word sale
Culture (.contd)
Significance of culture lies in
The understanding of the extent to which people are more than just chemistry, physiology, or a set of biological drives and instincts Thus, although all customers may be biologically similar, their views of the world, what they value, and how they act differ according to their cultural backgrounds
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Culture manifests through National character Differences in subcultures such as blacks, Jews, and Hispanics in America, and regional population groups in India Silent language of gesture, posture, food and drink preferences, and other nonverbal clues to behaviour Symbols in society; semiotics how signs function within a culture ie anything that conveys a meaning : advertising uses this to invest products with meaning for a culture whose dominant focus is consumption Taboos, or prohibitions in a culture, relating to various things such as the use of particular colours, phrases, or symbols Ritualised activities in which people participate at home, work, or play, both as individuals and as members of a group. Such behaviour occurs in a fixed episodic sequence, and tends to be repeated over time
Cultural Manifestations
Cultural meaning can be communicated by consumer goods Commonly observed consumption rituals
Morning tea/coffee, newspaper, TV/radio news, weather, traffic Shower and grooming : items used Dresses for work : as appropriate Drives : car model En route visits temple, posts a bday card Business meetings / lunch En route home takes in a movie, beverage Home for dinner over TV, then bed
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These activities are associated with various types of rituals : media, household, grooming, religious, gift-sending, business, eating,entertainment / recreation, bedtime Observe how rituals involve aspects of consumer behaviour processes in obtaining goods and services, exchanging them, or using and disposing of them
Characteristics of Culture
Culture(s) is / (are)
Invented : ideological system (ideas, beliefs, values, and ways of reasoning in defining what is desirable or not), technological system, organisational system Learned Socially shared Similar but different Gratifying and persistent Adaptive Organised and integrated Prescriptive
Cultural Values
Can be defined as
A widely held belief or sentiment that some activities, relationships, feelings, or goals are important to the communitys identity or well-being Or Centrally held and enduring beliefs that guide actions and judgments across specific situations and beyond immediate goals to more ultimate end-states of existence
(.contd)
Values produce inclinations to respond t specific stimuli in standard ways A specific behaviour is expected to either help or hinder the attainment of some value or group of values Consumers then, are motivated to engage in behaviours designed to enhance the achievement of certain values and to avoid those behaviours perceived to hinder the attainkent of certain value states Values vs attitudes
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Values are culturally determined Values are learned from social interaction, largely from our families and friends in settings such as schools and other places of aggregation Values strongly influence consumer hehaviour; even though specific situations may dictate slightly different actions, overall there is much similarity in consumer behaviour within a given culture, such as in tastes, methods of shopping, etc A marketer must understand societys basic value structure so that strategy decisions are consistent with ingrained cultural patterns Much easier to harmonize with the culture than to attempt to change fundamental cultural values
Market Segments
As in domestic, successful marketing in international also requires mkt segmentation Illustrative case of one survey identifying across 14 countries, five distinct global segments with shared attitudes, values, actual purchasing patterns:
Strivers Achievers Pressureds Adapters Traditionals But their consumption pattern can be distinct
Marketing Strategies
Across boundaries-cultures, separate marketing mixes and programs may be needed
Product considerations : home appliances use in Germany vs Spain 128 : 54 Promotion considerations Distribution channel considerations Pricing considerations
(.contd)
3. Physical appearance: Today, physical fitness, good health and smart appearance are on premium today. Slimming centers and beauty parlours are mushrooming in all major cities of the country. Cosmetics for both women and men are being sold in increasing numbers. Even exclusive shops are retailing designer clothes.
4.Materialism: There is a very definite shift in the peoples cultural value from spiritualism towards materialism. We are spending more money than ever before on acquiring products such as air-conditioners, cars CD players etc, which adds to our physical comfort as well as status.
Subcultures
Culture - consists of basic behavioural patterns which exist in a society However, all segments of a society may not have the same cultural patterns Within the heterogeneous national society more homogeneous subgroups can be distinguished These groups are subcultures having values, customs, traditions, and other ways of behaving that are peculiar to a particular group within a culture, eg students, academics, professional sportspersons, musicians, etc Individuals may be members of more than one subculture; thus marketers must identify the most relevant sub..
Sub-cultural Segmentation
Marketers also segment overall societies into smaller subgroups (subcultures). A subculture consists of people who have the same ethnic origin or customs or behaviors. Sub-cultural divisions are based on various sociocultural and demographic variables such as nationality, religion, geographic locality, race, age, and gender CB in the sub-cultural context explores marketing opportunities created by specific sub-groups within society
Youth Subculture
Money to spend discretionary almost entirely Primary purchaser product patterns clothes, music, entertainment, travel, cosmetics, fashion accessories, electronic items (including games) Style, colour, make, model Emergence of brand loyalties; may be long lasting Shopping behaviour rely more on personal sources for information on high value products and on media for others At the product evaluation stage, price (.discounts) and brand perceived as important Promoting to youth all media; gimmicky ads, use of celebrities, sports themes, humour
Olders Subculture
Product p brand, demand guarantees and warrantees, less experimenting unless recommended Shopping behaviour near homes, store loyalty particularly with high income and high value, value for money Promoting all media; quality, comfort, independence
Examples
original nationality : indian, nepali, bangladeshi, pakistani ancestral pride is manifestedin CB termsby their consumption of ethnic foods, travel to the homeland, purchase of ethnic cultural artefacts, art, music
Religion
hinduism, islam, buddhism, jainism, christianity (140 different organised religious subcultures symbolic and ritualistic products Geographical regions NorthIndian, SouthIndian, North Eastern, Western, Eastern, etc many languages, food habits, clothing, etc Race Aryan (high consumption/ experimental/ flamboyant), Dravidian (conservative/ subtle/ non-experimental), Mongoloid (fashion conscious/ trendy/ techno-inclined) Age appreciate different music, movie, lit, clothing between generations
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Gender Traditionally society assigns certain traits to males and females Males: aggressiveness, competitiveness, providers Females: gentleness, talkativeness, neatness, nurturers Within every society certain products are either male or female eg.Cigars, pants, ties-males and colognes, hair dryers, hair spraysfemales internet use: Males seek out investments, free software, discovery;females-reference materials, online books, medical information Men are likely to purchase more on the internet than women because of the latters concern with privacy and security Occupation govt, business, professional, exec Social class upper, middle, lower
Social Class
A group consisting of a number of people who have approximately equal positions in a society Positions may be achieved or ascribed/ inherited Opportunity may exist for upward or downward movement to other classes
Reference Groups
Reference groups are those an individual uses (ie refers to) in determining his judgments, beliefs, and behaviour OR one whose presumed perspectives or values are being used by an individual as the basis of her/his current behaviours use as guide for behaviour in a specific situation
Opinion Leaders
People who are able to exert personal influence on others, in a given situation Ability to influence others through verbal communication, as others seek advice and info Can influence +ively or ively Consumers tend to be influenced by those with whom they identify O L present in every group and each status level, but may be more functional at higher income / status level
Situations
High involvement product purchase seek info and advice Low involvement purchase less likely to seek direct opinion; but may observe others group members, esp those viewed as leaders Stimulating opinion leadership marketers can advertise with endorsement of health related products by doctors Generate communications concerning a product by sending samples to potential and influential customers cosmetics to beauty clinics; salesmen and retailers can encourage current customers to pass on to others by word-of-mouth Market mavens neighbourhood expert
Family
A type of small group Often predominant in its influence over consumer behaviour Primary group (characterised by intimate, face-to-face interaction) Reference group (with members referring to certain family values, norms, and standards in their behaviour) Strongly bonded group, functioning as an economic unit, earning and spending money Thus individual and collective consumption priorities, decide on products and brands, where to buy, how to use to further family members goals Moulded often by the family they grew up in
FLC
Bachelor stage Newly married couples Full Nest I Full Nest II Full Nest III Empty Nest I Empty Nest II Solitary Survivor I Solitary Survivor II Income and needs vary with change in the FLC stages - buying behaviour will differ accordingly
Non-traditional FLC
Some of the stages identified : Bachelor I Young couple : female head; married/ unmarried; no kids Full Nest I : female head; md / unmd; kid<6 Single Parent I / II Delayed full nest : female head 35-64; youngest child 6 or +
Family Decision-making
When two or more members are involved as opposed to individual decisions How money is to be spent Role structure (instrumental and expressive; initiator, influencer / opinion leader, info gatherer, decision maker, purchaser); power structure (patriarch, matriarch, equalit); resolve conflict
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Husband / wife influences : H tends to dominate in products like hardware, sports eqpt, financial svcs, etc W tends to dominate womens clothing, toiletries, groceries, kitchenware, child clothing, etc Autonomous decisions womens jewellery, cameras, mens casual clothing, toys and games Joint decisions fridge, furniture, TV, family car; greater tendency for this now, with influence of working wives
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Implications for marketers depending on who decides :
Media selection Advt msge target Requirement of separate ad campaigns
Education, occupation, and income of hus/ wife shapes who tends to decide; the better person does so Increasing influence of children
Perceived knowledge of prod, importance to them, more purchasing power The effects of authoritarian parents, neglecting, democratic, permissive
Consumption central to meaningful practice of daily life Consumption choices not only from products utilities, but also symbolic meanings Not only to create and sustain self, but also to locate in society The latter may also enslave us in the illusive world of consumption
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Consumers attempts to directly evaluate physical prod attributes intrinsic cues Difficulty in distinguishing between different prod offerings on the basis of direct attributes, eg taste of colas May be able to discriminate between brands, but not be able to determine whether these differences are important in predicting which brand will provide greater satisfaction, eg best grade of waterproofing, adhesives, carpeting, paint, etc Use of extrinsic cues : consumers experience, how cues are encoded (wrapper saying freshly packed, hygienically sealed); not encoded meaningfully (chemical names); additional inferential beliefs or interpretations (by association)
Product offerings-new
New-product innovation is an essential element of market dynamics Among various definitions an innovation is a product, service, attribute, or idea that consumers within a mkt segment perceive as new and that has an effect on existing consumption patterns Continuous innovns least disrupting to established consumption patterns; prod alteration only, eg fluoride toothpaste, salt in toothpaste, auto model variants Dynamically continuous innovns more disrupting, but usually not altering estbld patterns; new prod or alteration, eg wall TV, mobile phone with qwert key pad Discontinuous innovns new prod with new behaviour patterns, eg genset to inverters, pc to laptop, swipe card tech Some offerings and innovations influence how, when, where, why, or whether we acquire products
Mkt segmentation and segment consumer behaviour lead to importance of how consumers perceive the marketers prod Cause for product positioning Positioning on : prod features, benefits, usage (or situation, eg Campbells soup, Gatorade), user (Johnson baby oil), competition
Delivering product
The place variable involves consideration of where and how to offer products and services for sale Also concerned with the mechanisms for transferring goods and their ownership to consumers What type of retails outlet Retail outlets location and number Logistics of supplying retailers How much control necessary over channels What image and clientele should the retailer seek to cultivate
The When
The time dimension :
when do consumers buy seasonality, occasions, demographics; also working hours, free time, 24 hours necessity; purchase time existing and new prods; in-shop browsing and decision-making time
Consumerism activities of govt, business, and independent orgns that are designed to protect the rights of consumers Why :
Disillusionment with the system Performance gap Consumer info gap Advertising content Impersonal and unresponsive mktg institutions Intrusions of privacy
Safety
Unsafe product and physical injury Drug controller : medicines and allied prods Certification authorities : RTOs, DGCA, Municipality (elevators) ISI, AGMARK, etc
Information
Deception : capacity to deceive puffery to deception; claim-fact discrepancy; claimfact interaction Corrective advtg Affirmative disclosure Availability of sufficient info unit pricing, nutritional labeling, dating, information overload
Choice
Consumers must have choice to benefit from market forces interplay A different take consumers should be given not what they want, but what is best for them Too much choice may confuse and lead to unsuitable choice
Environmental Concerns
Right to a clean environment Concern about potential environmental damage caused by consumer products and packaging Companies trying to protect the environment majority consumers for it Change in shopping and lifestyle to help protect the environment Consumer mindset changing willingness to pay extra for the environment yet not enough in ratio; a challenge
Privacy
Consumer information collected, merged, and exchanged through computer and communication technologies has become a tool of power Concern over threats to privacy Public still willing to give personal info when convinced about the need and fairplay Consumer privacy protection policies
Consumer responsibilities : obligation choose wisely, keep informed, put safety first, help protect the environment
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Acquisition process enables consumers to confront certain stimuli in their environment and begin to process them Exposure, a part of the acquisition process, has two major categories : Active search : to seek out specific types of stimuli, eg nutritional content per serving of a baby food; influenced by this factor under conscious control; internal, external Passive reception : consumers confront stimuli in the process of living their daily lives; exposure to advts (TV, magazines), news reports, info as by-product of shopping activities; advtsr tries to counter zapping by chameleon advt
Sensation
Awareness threshold Differential threshold; Webers Law
Opportunity situation, time, aids Motivation or willingness inclination, incentive to engage Depth of processing degree of effort consumer expends in developing meaning from the stimulus
Perception
Perception is the way in which an individual gathers, processes, and interprets information from the environment. Perception is the process of making sense out of an experience the imputing of meaning to experience
Factors ImpactingPerception
Internal: Sensory Abilities Comprehension Skills Memory Capacity Needs Experience/Knowledge Involvement Confidence Pre-dispositions (Attitudes, Beliefs, Mood)
External: Stimulus(I) Characteristics: Motion, Intensity, Shape, Format, Color, Contrast, Location, Size Competing Stimuli Setting Characteristics
Selective perception
The various elements of selective perception are: selective exposure selective attention selective comprehension selective retention
Selective comprehension
Selective comprehension: This stage involves interpreting discrepant information so that it is consistent with beliefs and attitudes
Perception The process by which an individual uses information to create a meaningful picture of the world by selecting, organizing interpreting Perception is important because people selectively perceive what they want and it affects how people see risks in a purchase.
Selective Perception
Selective exposure
Consumers can pay attention to messages that are consistent with their own attitudes and beliefs Consumers can ignore messages that are inconsistent.
Selective comprehension
Involves interpreting (distorting?) information so that it is consistent with a person's attitudes and beliefs.
Selective retention
Consumers do not remember all the information they see, read, or hear.
Subliminal perception
Consumers see or hear messages without being aware of them. This is a hotly debated issue with more popular appeal than scientific support. Research suggests that such messages have limited effects on behavior
Perceived Risk
Anxieties felt Consumes cannot anticipate the outcomes of a purchase Believe that there may be negative consequences. Marketers try to reduce a consumer's perceived risk and encourage purchases by strategies such as providing
Free trial of a product Securing endorsements from influential people Providing warranties and guarantees.
Learning
Those behaviors that result from repeated experience and thinking. Behavioral Learning The process of developing automatic responses to a situation built up through repeated exposure to it.
Four variables central to how consumers learn from repeated experience are:
Drive - a need that moves an individual to action Cue - a stimulus or symbol perceived by consumers Response - the action taken by a consumer to satisfy the drive Reinforcement - the reward
Employed in conjunction with the methods of learning connections :
Classical conditioning Instrumental conditioning
Marketers use two concepts from behavioral learning theory: Stimulus generalization - occurs when a response elicited by one stimulus (cue) is generalized to another
using the same brand name for different products is an application of this concept
Brand extension aspects play on this and marketers frequently use this to advantage (reference should be made vis--vis brand management)
Cognitive learning
Involves making connections between two or more ideas Or, simply observing the outcomes of others behaviors and adjusting one's accordingly Brand loyalty Is a favorable attitude and consistent purchase of a single brand over time Brand loyalty differs across cultures, countries, etc
Beliefs
consumer's subjective perception of how well a product or brand performs on different attributes.
Degree of learning
Rate, wearout, maintain, extinction, recovery, recall
Retrieval of information
Accessing information in long-term memory and activating it into consciousness Correlated with other material from s-t memory and processed into meaningful package for use Influences :
Extent of original learning Goal of original learning Contextual relevance
Advertising applications
Advtg msge with unique aspects long term impact on memory Order in which material is presented beginning and end most remembered Msges that encourage immdte rehearsal remembered (eg tele no., address) Chunked more processing and better retention (7 items) Amount of info transferred to long term memory is a function of time avble for processing Cue-dependent eg babbling mountain brook for healthy water Meaningfulness of individual better retained
Methods
Visual material Interactive imagery Showing mistakes Incomplete msges Mnemonic techniques (jingles, numbers, melodic patterns)
Habit strength" - said to develop as a function of practice Habits were depicted as stimulus-response connections based on reward Responses (rather than perceptions or expectancies) participate in habit formation, the process is gradual, and reward is an essential condition
Adoption acceptance and continued use of a product or brand by an individual Adoption process awareness, comprehension, attitude, legitimation, trial, adoption Some consumers pass thru the adoption process early in the products life or it could be later Relevant for marketers : early stages of the adoption process, mass media appear most effective in creating awareness; later stages : personal sources of info, so effective personal selling and word-ofmouth communications at these points
Diffusion Process
The nature of the process by which innovations spread Diffusion process refers to a group phenomenon (as against the indiv phenomenon for adoption), indicating how an innovation spreads among consumers Trickle-down, trickle-across, subcultural groups propagation, leadership
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Innovators, early adopters, early majority, late majority, laggards Factors influencing rate of diffusion relative advantage, compatibility, complexity, trailability, observability, cost Marketing implications from product design to packaging, distribution and selling, to promotion