consumer behavir complete

7/25/2019 Consumer Behavir Complete

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WELCOME

Dear Students

Welcome to First class of Consumer behavior, omajor subject of marketing specialization

Consumer Behavior comprises of Five Units

Unit 1: Fundamentals of Consumer Behavior

Unit 2: Consumer as an Individual

Unit 3: Consumer in Social Settings

Unit 4: Consumer Decision Making Process


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INTRODUCTORY CLASS

Recommended TEXT

Consumer Behavior : Schiffman, Kanuk and Kum

Consumer Behavior: Loudon and Della Bitta

Consumer Behavior: Hawkins, Mothersbaugh and

Mookerjee

Evaluation System

Mid Term :30

End Term: 60


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INTRODUCTION:

Though similar, consumers are unique in themthey have needs and wants which are variediverse from one another

The marketer helps satisfy these needs and through product and service offerings.

A comprehensive yet meticulous knowledgconsumers and their consumption behavior is esfor a firm to succeed.

Herein, lies the essence of Consumer Behavinterdisciplinary subject that emerged as a se


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CONSUMER BEHAVIOR DEFINED

Consumer behavior reflects the totality of c

decisions with respect to the acquisition, udisposition of goods, services, activities, experiencand ideas by (human) decision-making units [over ti


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DEFINITION OF CONSUMER BEHAVIOR

The behavior that consumers display in seafor, purchasing, using, evalauting and disposproducts and services that they expect will their needs. Schiffman and Kanuk

..the decision process and physical aengaged in when evaluating, acquiring, usdisposing of goods and services. - LoudoBitta

Th t d f th


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DEFINITION OF CONSUMER BEHAVIOR

Those actions directly involved in obtaconsuming and disposing of products

services including the decision processeprecede and follow these actions. -E

Blackwell, Miniardthe dynamic interaction of effect cognition, behavior and the environme

which human beings conduct the exchaspects of their lives--American Mark


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NATURE OF CONSUMER BEHAVIOR

The subject deals with issues related to cognitand behavior in consumption behaviors, ag

backdrop of individual and environmental determThe subject can be studied at micro levels depending upon whether it is analyzeindividual level or at the group level.

The subject is interdisciplinary.

Consumer behavior is dynamic and interacting in

Consumer behavior involves the of exchange between the buyer and the sellebeneficial for both.

As a field of study it is descriptive and also


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SCOPE OF CONSUMER BEHAVIOR:

The study of consumer behavior deals with understa

consumption patterns and behavior. It includes within answers to the following:

- What the consumers buy: goods and services

- Why they buy it: need and want

- When do they buy it: time: day, week, month, occasions etc.

- Where they buy it: place

- How often they buy it: time interval


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BUYING ROLES

The scope of consumer behavior includes not only the act

also the variousroles

played by him/ different individuafive buying roles, viz., Initiator, Influencer, Decider, User, Buy

Theinitiatoris the person who identifies that there exists a n

theinfluenceris the one who influences the purchase decisipurchase activity and/or the use of the product or service;

the decideris the one who decides whether to buy, what tobuy, from where to buy, and how to buy;

the buyeris the one who makes the actual purchase; and, person (s) who use the product or service.

The useris the person (s) who use the product or service.

These five roles may be played by one person or by differ


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BUYING ROLES

A child goes to a kindergarten school. She cback home and asks her parents to buy her aof color pencils and crayons. Now the roles plare:

1. Initiator: the child in nursery school2. Influencer: a fellow classmate

3. Decider: the father or the mother

4. Buyer: the father or the mother


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WHY STUDY CONSUMER BEHAVIOR

Understanding the reasons for studying a discipline enables one

appreciate its contributions; therefore, this section presents a jusfor the time and effort that the reader will expend in learninconsumers.

Significance in Daily Lives

Application to Decision Making

Micro Perspective

Societal Perspective

Perceptions

Attitudes

Cultures


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CONSUMER BEHAVIOR AND MARKETING CONC

ProductionConcept

ProductConcept

SellingConcept

MarketinConcept


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APPLICATION OF CONSUMER BEHAVIOR IN

MARKETINGAn understanding of consumer behavior is necessary for lo

and survival of a firm. It is viewed as the edifice of the maan important orientation in marketing management

An understanding of the study of consumer behavior appropriate marketing strategies for a firm keeping in vieand his environment.

It has a number of applications; the main application base

Analyzing market opportunity

Segmentation, Targeting and Positioning

Marketing-mix decisions

Product

PriceDistribution


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Interdisciplinary Nature of Consumer Behavior

Consumer behavior was a relatively new field of stud

mid- to late-1960s. Because it had no history or bresearch of its own, marketing theorists borrowed heavconcepts developed in other scientific disciplines.

The below mentioned discussion states how various diare interrelated to consumer behavior

Psychology: This includes the study of the individual as weindividual determinants in buying behavior

Sociology: includes the study of groups as well as the group in buying behavior

Social psychology: This includes the study of how an inoperates in group/groups

Anthropology: This is the influence of society on the individcultural and cross-cultural issues in buying behavior


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THE IMPACT OF DIGITAL TECHNOLOGIES ON MARKETING STRATEG

Digital technologiesallow much greater customization of services, and promotional messages than older marketing to

They enable marketers to adapt the elements of the markeconsumers needs more quickly and efficiently, and to build relationships with customers on a much greater scale.

Online communication and emerging digital technologies hintroduced several drastic changes into the business environm

Consumers have more power than ever before.

Consumers have access to more information then ever before.

Marketers can offer more services and products than ever be

The exchange between marketers and customers is increasingand instantaneous.


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Consumer ResearchSanjeev Kumar


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Consumer Research

Consumer research, has developed as an extension of the f

marketing research with more emphasis on the consumer behaaspects. The initial thrust on studying consumer behaviomarketers was done for two reasons.

To determine as to why consumers made the purchase decisio

To understand how consumers would react to promo

messages. It was presumed that if they (the marketers) could have acces

the information about the consumer decision making processhelp them in formulating various marketing strategies adeveloping appropriate promotional messages, which could consumers to take a positive purchase decision.


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Type of Consumer Research

Qualitative Research

Qualitative research findings enable marketers to gain insights into sthe psychological aspects of consumer behaviour which will help in thgeneration of new product ideas.

The research methodologies used by them are ethnography, semiotiin-depth interviews.

Ethnography - is related to cultural anthropology, where in the reseaput themselves in the society under study so as to absorb all theimplications of the cultural practices.

Semiotics - The study of symbols and their interpretations or meanin

In-depth Interviews-It is a method where the questions are asked toobtain a gainful insight into the understanding of consumer behaviou


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Type of Consumer Researches

Quantitative research

Quantitative research deals with numbers and answers questioabout how many, how much, or how often.

Quantitative-oriented survey research generally relies on closeended questions--questions that can be answered briefly, oftena yes, a no, or a number.

It is descriptive in nature and is used by researcher to understaneffects of various promotional inputs on the consumer, thus enamarketers to predict consumer behaviour.


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Consumer Research Process

The consumer research process can be studied as a 6 procedure. The various stages are not mutually exclusive; nare these essentially sequential. However, for purposes ofsuch a procedure exists. The various stages of the research pare as follows:

1.Developing objectives

2.Collecting Secondary Data: Internal and External

3. Designing primary research: Qualitative and Quantitativ

4.Sampling & data collection

5.Data analysis and reporting research findings

6.Report Preparation


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Consumer Research Process


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Factor Influencing

Consumer Decision MakiSanjeev Kumar


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Factor Influencing Decision Making

Consumer purchases are influenced strongly by or there are f Cultural Factor

Social Factor

Personal Factor

Psychological Factor.


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Culture Factor

Cultural factor divided into three sub factors (i) Culture (ii) Sub CulturSocial Class

** Culture:- The set of basic values perceptions, wants, and behaviors learned by a memb

from family and other important institutions. Culture is the most basic cause of a person's wants and behaviour.

Every group or society has a culture, and cultural influences on buying behavivary greatly from country to country. Sub Culture :- A group of people with shared value systems based on common life experien

situations. Each culture contains smaller sub cultures a group of people with shared valu

based on common life experiences and situations. Sub culture includes nationreligions, racial group and geographic regions. Many sub culture make up impmarket segments and marketers often design products.


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Social Class:- *** Almost every society has some form of social structure, social clas

society's relatively permanent and ordered divisions whose membersimilar values, interests and behaviour


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Social Factors :- A consumer's behaviour also is influenced by social factors, suc

the (i) Groups (ii) Family (iii) Roles and status

** Groups :- Two or more people who interact to accomplish individual or mutual goal

A person's behavious is influenced by many small groups. Groups that have a d

influence and to which a person belongs are called membership groups.

Some are primary groups includes family, friends, neighbours acoworkers. Some are secondary groups, which are more formalhave less regular interaction. These includes organizations likereligious groups, professional association and trade unions.


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Family:-

Family members can strongly influence buyer behaviour.

The family is the most important consumer buying organization societhas been researched extensively.

Marketers are interested in the roles, and influence of the husband, wchildren on the purchase of different products and services.

Roles and Status :- A person belongs to many groups, family, clubs, organizations.

The person's position in each group can be defined in terms of both role and sta

For example. M plays the role of father in his family, in his company, he playsof manager, etc. A Role consists of the activities people are expected to according to the persons around them.


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Personal Factors :-

It includes

i) Age and life cycle stage (ii) Occupation (iii) Economic situatStyle (v) Personality and self concept.

Age and Life cycle Stage:- People changes the goods and services they buy over their lifetimes.

Tastes in food, clothes, furniture, and recreation are often age related. shaped by the stage of the family life cycle.

Occupation :-

A person's occupation affects the goods and services bought.

Blue collar workers tend to buy more rugged work clothes, whereaworkers buy more business suits. A Co. can even specialize in making proby a given occupational group.

Thus, computer software companies will design different produc

managers, accountants, engineers, lawyers, and doctors.


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Economic situation :-

A person's economic situation will affect product choice Life Style :-

Life Style is a person's Pattern of living, understanding these forces involvmeasuring consumer's major AIO dimensions.

i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, farecreation) and opinions (about themselves, Business, Products)

Personality and Self concept :-

Each person's distinct personality influence his or her buying behaviour. Prefers to the unique psychological characteristics that lead to relatively coand lasting responses to one's own environment.


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Psychological Factors :-

It includes these Factors. i) Motivation (ii) Perception (iii) Learning (ivattitudes

Motivation :- Motive (drive) a need that is sufficiently pressing to direperson to seek satisfaction of the need

Perception :- The process by which people select, Organize, and interinformation to form a meaningful picture of the world.

Learning:- Changes in an individuals behaviour arising from experien

Beliefs and attitudes :- o Belief is a descriptive thought that a person something

o Attitude, a Person's consistently favourable or unfavourable evaluafeelings, and tendencies towards an object or idea


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Thank You


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Consumer Decision MakiSanjeev Kumar


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Consumer Decision Making

The consumers decision to purchase or nopurchase a product or service is an impomoment for most marketers.

It can signify whether a marketing strategybeen wise, insightful, and effective, or wheth

was poorly planned and missed the mark.

Thus, marketers are particularly interested inconsumers decision-making process.


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DECISION

In the most general terms, a decision is the selection of an otwo or more alternative choices.

When a person has a choice between making a purchase and npurchase, a choice between brand X and brand Y, that peposition to make a decision.

If the consumer has no alternatives from which to choose anforced to make a particular purchase or take a particular actionprescribed medication), then this does not constitute a deccommonly referred to as a Hobsons choice.


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Types of Decision Making

Decisions Making can be of two types,

a) Programmed decision making and b) Non-programdecision making

Programmed decision making

This is applied for problems that are routine and regula

Such decisions are made without much thought. With respect to marketing, these are decisions related

day to day purchases or convenience and shopping gothese are generally low involvement purchases.

Examples: Purchases made for staples, toiletries etc.


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Type of Decision Making

Non-programmed decision making

This is applied for problems that arise suddenly and are uniqnovel.

As the problem is sudden and novel, it is complex and requireof information gathering, deliberation and thought.

With respect to marketing, these are decisions related to infrepurchases or specialty goods and emergency goods; these arinvolvement purchases.

Examples: Purchases made for laptops, real estate etc


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Levels of Consumer Decision-Making:

Not all consumer decision-making situations receiv

require) the same degree of information search.

If all purchase decisions required extensive effort, consumer decision-making would be an exhausting prthat left little time for anything else.

One way to characterize consumer decision making an effort continuum, ranging from very low to very We can distinguish three specific levels of consdecision-making on continuum level:


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Levels of Consumer Decision-Making

Extensive Problem solving:When consumers have no establ

for evaluating a product category or specific brands in that catenot narrowed the number of brands they will consider manageable subset, their decision making efforts can be extensive problem solving

Limited Problem Solving: At this level of problem solvingalready have established the basic criteria for evaluating category and the various brands in the category. However, tfully established preferences concerning a select group of brand

Routinised Response Behavior: At this level, consumers have ewith the product category and a well-established set of criteria to evaluate the brands they are considering.


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Levels of Consumer Decision-Making

Another and more complete way to think about consumer decision m

considers two separate factors: processing effort and involvement. The first factor, processing effort, represents a continuum from aut

to systematic processing.

At one extreme, consumers may process no information and respond intuitively. At the other extreme, consumers gather and evagreat deal of product information prior to choice.

The second dimension, involvement, represents a continuum rangindecisions that entail low levels of consumer involvement or perelevance to decisions that elicit much higher levels of intereconcern.

It may be helpful to think of processing effort as primarily cognithinking-oriented and involvement as more affective or feeling-orien


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Type of Consumer Decision Making


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Type of Consumer Decision Making

Brand Laziness :When both involvement and information pr

low (Figure 1, quadrant 1), consumers typically make choices ahabit, requiring little effort. This is referred to as brand laziness

In contrast, brand loyalty involves intrinsic commitment to a on the benefits or values it provides consumers.

Low levels of interest, consumers limited past experience

requires moderate to high levels of information processing. Wetype of decision as variety seeking.

The fourth type of decision combines high involvement with hinformation processing. Represented in quadrant 4 of Figures is referred to as problem solving. Decision making of this tyinvolves unfamiliar, expensive products that are purchased infre


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Models of Consumers: Four Views of Consumer Decision

The term models of consumers refer to a general view or perto how and why individuals behave as they do. Four vieexamined:

An Economic View

A Passive View

A Cognitive View An Emotional View


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Stages in Consumer Decision MakingProcess

Marketers are interested in consumers purchase behaviors, i.emaking process. The consumers decision making is a chovarious alternatives that address problematic issues like:

- what to buy; - where to buy; - when to buy;

- how to buy; - how much to buy.

Consumer decision making involves a continuous flow of interaenvironmental factors, cognitive and affective processes anactions.

A consumers decisions are based on knowledge, affect and beto the marketing mix.


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There are five stages in the consumer decision making process.are

Need recognition/Problem recognition

Pre-purchase information search

Evaluation of alternatives

Purchase decision

Post-purchase outcome and reactions


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1. Need recognition/Problem recognition:

This is a stage of perceiving a deficiency/need.

A need could be triggered off by an internal stimulus oexternal stimulus.

For example, a person is thirsty and feels like having a

The stimulus is internal. On the other hand, while walkthe street, he sees a hoarding which shows a person hafrosted, chilled cola, and he too desires to have the samneed is said to have been stimulated by an external sti

A need or problem recognition could be simple or com


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A need or problem recognition could result when:

a)The Actual State changes (AS type):- the product is failing, consumer is running short of it;

Example: A product stops functioning and the customer needs replacement; e.g.. A refrigerator; Samsung One door: Standard

b) The Desired State changing (DS type):- there is an imbalance between the actual state and the desired state

-another product seems better and superior to the one that is being current

-consumers who react in such situations are called DS Types.

Example: The product is functioning properly; but the consumer wants to b

model; eg., The refrigerator is functioning properly; However, the customer

another one which has more features and is more modern; Samsung Two do


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2: Pre purchase Information Search :

After a need is recognized, the consumer goes for an information seabe able to make the right purchase decision. He gathers information

(i) Product category and the variations

(ii) Various alternatives

(iii) Various brands.

The amount of information a consumer will gather depends on the fo the consumer: demographics (age, gender, education),

psychographics (learning, attitudes, involvement, person product category: differentiation and alternative brands a

risk, price, social visibility and acceptance of the product. Situation: time available at hand, first time purchase, qua

information required, availability of information.


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Types of Search Activity:

Specific: This type of search activity is specific to the problemimmediate purchase; it is spurred as the need arises, and the conactively seeks information.

Ongoing: Here the search activity is a gradual process that coulover time

Incidental: This is a byproduct of another search activexperiences. Consumers absorb information from their day troutine activities and experiences.

i i i ki


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. Information Sources:

The information sources are of two types:

Internal sources: This includes the consumer and his self. He recalls informstored in his memory (comprising information gathered and stored, aexperiences, direct and indirect). Internal sources seem sufficient when:

- it is a routine purchase

- the product is of low involvement

ii) External sources: Here the consumer seeks information from environment. External sources of information include:

-Interpersonal communication (family, friends, work peers, opinion leaders e

-Marketing communication or commercial information (advertisements,company websites, magazines etc.)

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Evaluation of alternatives:

Once the consumer has gathered information and identified thealternatives, he compares the different alternatives available ocertain criteria. This involves:

Generation of choice alternatives;

Identification of evaluative criteria: Attributes and Benefits; Application of Decision Rules.

St i C i i ki


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Generation of choice alternatives:

While generation of alternatives, a consumer moves from an evoked set choice set.

- Evoked set/Consideration set: This is the set of alternatives thatconsiders while making a purchase decision; these exist either in hor feature prominently in the environment. The consumer perceivbe acceptable.

- Inept set: These are those alternatives from the evoked seconsumer excludes from further consideration, as he perceives tinferior and unacceptable.

-Inert set: These are those alternatives from the evoked seconsumer excludes from further consideration, as he is indifferethem and perceives them as ones without much advantages or be

- Choice set: This comprises the final set of one or two brands fromfinally decides.

St i C D i i M ki


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Identification of Evaluative Criteria: Attributes and Bene

These are objective and subjective parameters of the bconsumer regards as important, and uses as standards toamong the various alternatives.

They are features that a consumer considers in choalternatives; these could be functional/utilitarian in natattributes, features), or subjective/emotional/hedon

prestige etc.). The major evaluative criteria are: - Economic: Price, Value (Product Attributes, B

Evaluation of Quality, Price, & Features).

- Behavioral: Need/motivation, Personality, self-concimage, Lifestyle etc.

- Social influences: Group influences, environmental iss

St i C D i i M ki


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Application of Decision Rules to make a final choice amongst a

The consumer uses certain decision rules. The decision rules hesimplify the decision process; the various evaluative criteria and integrated so as to simplify the evaluation process.

There can be two kinds of Decision Rules, viz.,

Compensatory rules and

Non-compensatory rules.

St i C D i i M ki


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Compensatory rules: Under compensatory rules, the various eva

criteria are listed as attributes. These attributes are scored and ratedvarious alternative brands.

A lower rating on an attribute may be offset by a higher rating on ani.e. a higher rating on one attribute would compensate for a lower raanother

Compensatory rules could assume two forms: simple and weighted.

Simple summated: The attributes are rated for each brand and theare totaled.

Weighted: The attributes are first given weights relatively based level of importance; thereafter, the attributes are rated and finally after multiplication with the weights. The weighted scores are then to

St i C D i i M ki


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Non-Compensatory rules: Here, a negative evaluation of any oeliminates the brand from consideration.

Conjunctive rule: A minimally acceptable cut off point is establisattribute. The brands are evaluated, and, the brand that falls below tacceptable limit on any of the attributes is eliminated/rejected.

Disjunctive rule: a minimally acceptable cut off point is establis

attribute. The brands are evaluated, and, the brand that falls abopoint on any of the attributes is selected.

Lexicographic rule: The various attributes are ranked in terms importance. First, the brands are evaluated on the attribute that is comost important. If a brand ranks considerably high than the oattribute, it is selected. In case the scores are competitive, the prorepeated with the attribute considered next in importance.

St i C D i i M ki


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Purchase decision

After the consumer has evaluated the various alternatives, he selecbrand. Consumer purchases may be trials/first purchases or repeat pu

Trials/First purchase: Trials could be elicited through market testipromotional tactics such as free samples, coupons, etc.

Repeat purchases: If the consumer is satisfied, he would buy thRepeat purchases lead to brand loyalty

It is noteworthy that a purchase intention (desire to buy the most prmay not always result in a purchase decision in favor of the branmoderated by

(1) Attitudes of others; and (2) Unexpected situational factors.

St i C D i i M ki


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Post-purchase outcome and reactions

The post purchase outcome and reactions contains two stages; Stage I comprises Post purchase Cognitive Dissona

feeling of tension and anxiety that a consumer experiepurchase of a product. The consumer begins to haveuncertainty with respect the performance of the productdoubt his purchase decision whether the decision was th

He begins to ask himself the following questions: a) Have I made the right choice?

b) Have I purchased the right brand?

c) Have I got value for money?

Stages in Cons mer Decision Making


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Cognitive dissonance generally occurs in cases where:

(i) the decision making and purchase relates to a high involvem

(ii) the consumer cannot return the product;

(iii) the various alternatives have desirable features and are all c

(iv) the alternatives are also unique in some way or the other.

Consumers try to reduce this dissonance by:

(i) Gaining more product information; (ii) Discussing with ocustomers who have bought the same product/brand; (iii) Goidealer and asking for reassurances.

Stages in Consumer Decision Making


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Stage II: Product usage and reaction

After the purchase, the consumer uses the product and reevaluchosen alternative in light of its performance viz. a viz. the expeThis phase is significant as it

acts as an experience and gets stored in the memory

affects future purchase decisions;

acts as a feedback. There could be three situations t



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Performance meets expectations:This leads to a neutral feelinCustomer may think of more suitable alternatives next time.

-Performance exceeds expectations:The customer is satisfiedthis leads to a positive feeling. He would tend to repeat purchasit would lead to brand loyalty. He would also spread positive womouth.

-Performance falls short of expectations:Here, the customer dissatisfied and this leads to a negative feeling. The customer wsearch for other alternatives, express grievances, spread negatiword of mouth and may even resort to legal action.



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It is important to note that the five staged decision making pronot so simple; it is complex.

The decision making process is an interplay of reactions amoconsumer and his cognition, affect and behavior on the one hawell as the environmental forces on the other hand.

Further, the procedure may not always follow a linear ordethe decision making may not always proceed through all thstages; it would vary acrossthe nature of the product (high and low involvement);

the purchase situation (emergency or planned or routine);

the personal characteristics of the consumer; and

the type of problem solving (EPS, LPS and RPS).


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CONSUMER MOTIVATIONSANJEEV KUMAR


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CONSUMER MOTIVATION

While making decisions related to purchase activity, consumer

amongst each other because the dynamics that operate while condecision making are significantly different

The consumer decision making process is impacted by inddeterminants (psychological influences)and, group influences (socioinfluences)

The psychological influences include the forces that impact con

decision making; these are (i) Consumers Needs & Motivation, Emand Mood, Consumer Involvement; (ii) Consumer Learning; (iii) PersoSelf-concept and Self-image; (iv) Consumer Perception, Risk and Im(v) Consumer Attitude; and (vi) Consumer Communication.

In this lecture we will study consumer motivation.


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The Motivation Process: A Psychological Perspective

Motivation is the driving force that impels people to act. It reprthe reasons one has for acting or behaving in a particular way.


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Needs and Goals

'Needs' can be defined as a felt state of deprivation of somesatisfaction.

Every person has needs.

Some of these needs are innate and are born with individuasome are acquired. Innate needs are physiological or biogenic, and include food, wat

clothing, shelter, and sex. These needs (innate) are considered primary nmotives.

Acquired needs are needs that we learn in response to our culenvironment and include the need for self-esteem, prestige, affection,and learning.


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Needs and Goals

Needs may also be classified even more basicautilitarian or hedonic.

A consumer's utilitarian needs focus on some prabenefits and are identified with product attributesdefine product performance such as economy or dura

etc. Hedonic needs relate to achieving pleasure from

consumption of a product or service and are associated with emotions or fantasies.


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Needs and Goal

Goals are the sought-after results of motivated behaviorhuman behavior is goal oriented.

There are two types of goals: Generic goals are outcomes that consumers seek in o

satisfy physiological and psychological needs. Product-specific goals are outcomes that consumers

using a given product or service. When a consumer states they want a pair of jeans, th

stated a generic goal. When they announce they reallypair of Calvin Klein jeans, then they have stated pspecific goals.

Application: Goals


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Application: Goals

Discussion Questions

What is the generic goal?

What is the product-specificgoal?

S l ti G l


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Selecting Goals

For a given need choice of the goal to satisfy the need wil

depend on a number of things such as:

personal experience,

social and cultural norms & values

personal norms and values

physical and intellectual capacity,

accessibility of goal

self image


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Motives and Motivation

Several schemes of classifying motives have suggested which group motives on the basis of one ucharacteristic of interest.

Motives can be rationalas well asemotional.

According to another scheme, motives are classifie

conscious versus unconscious

Motivation can take a positive as well as a negativeand correspondingly a positive and negative direrespectively.


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Motivational Conflicts

A consumer may often find himself amidst conflicting

and goals at the same time or at various times, and this leawhat is referred to as an intra individual conflict, somethinthe person feels within himself.

Conflicting goals could lead to three types of intra indiconflict:

Approach-approach conflict :to make a choice betwee

desirable alternatives each of which are equally attractive Approach-avoidance conflict :Here the consumer is faced

an option that has both a positive and a negative to it

Avoidance-avoidance conflict :conflict involves chobetween two equally unattractive and undesirable alternat

The Dynamic Characteristics of Motivation


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The Dynamic Characteristics of Motivation

Motivation is a highly dynamic process. It continchanges, to adapt to the changing life experiences individual. Under the dynamic constructs of motthere are broadly three aspects which will be discuss

Role of needs & goals to adapt to the chan

motivationFrustration and defence mechanism in the ne

satisfaction chain

Arousal of motive and motivation

Role of Needs & Goals to Adapt to the


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Role of Needs & Goals to Adapt to theChange in an Individual's Motivation

Whenever there are changes in an individual's physical conenvironment (or situation), experience etc., his or her needs &will change accordingly.

Some of the characteristic features of needs & goals are:

Needs are never fully satisfied

New needs emerge as old needs are satisfied

Success and failure influence goals

Substitute goals

Frustration and Defence Mechanism in


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Frustration and Defence Mechanism in Needs-Satisfaction Chain

Frustrationis the feeling experienced by an individual when heto achieve a goal. There are various reasons which come in theway in the attainment of a goal.

While some may go for substitute goals, others may adopmechanism like behaviour to protect their self-image and self-e

While taking a defensive reaction to frustration the individual m

different ways.

The defence mechanism may be in the form of aggression, comrationalisation regression, withdrawal, projection autism idenrepression.

Frustration and Defence Mechanism in th


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Frustration and Defence Mechanism in thSatisfaction Chain

Aggression:Individuals while trying to cope up with frustration may raggressive behaviour as an attempt to protect their self-esteem.

Rationalisation or compromise: At times individuals try to rationalplausible reasons for not being able to achieve their goal. He wcompromise (with himself) by self-convincing that it (goal) is npursuing.

Regression:Sometimes people react to frustrating situations with ch

Withdrawal:A person may try to handle frustration by slowly withdsituation. A person who was expecting a promotion to a higher stdenied the same will put in his papers and quit the organisation.

Frustration and Defence Mechanism in th


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Frustration and Defence Mechanism in thSatisfaction Chain

Projection: Under this an individual may re-define a frustrating situation

blame (or putting blame) for his or her draw back or inabilities on other perso

Autism:Autism or autistic thinking refers to fictitious thinking evolved arouemotions with very less association with reality

Identification: People have been found to be resolving their feelings of fsubconsciously identifying themselves with other persons or situations

consider relevant Repression: Another method adopted by individuals as a defence m

frustration is by repressing their unsatisfied needs. That is, they may try need or force their need out of their minds.

Sublimation: Substitute socially acceptable behavior for unacceptable impu

Which Defense Mechanism is us


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Which Defense Mechanism is us

Arousal of Motives and Motivations


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Arousal of Motives and Motivations

An individual's specific needs are dormant most of the time. Th

arousal of any particular need (or needs) may be as a result of aindividuals:

Internal stimuli (Physiological, emotional or cognitiveprocesses).

External environment. (Environmental)..


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Theories of Motivation

There are many motivation theories yet none ot them expla

aspects of motivation. Two major theories are discussedMcClelland's Theory of Trio of needs and Maslow's HierarcNeeds theory.

McClelland's Theory of Trio of Needs :McClelland has simplistic way of classifying the needs in three categories.

Needs for power

Need for affiliation

Need for achievement:

Trio of Needs


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Which of the trio ofneeds does the adappeal to?


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Maslow's Hierarchy of Needs Theory

The hierarchy of needs proposed by Abraham H Maslow is perha

known. Maslow classified needs into five groupings, ranking in order of impo

low-level (biogenic) needs to higher-level (psychogenic) needs anthe degree to which each would influence human behaviour.

According to this scheme, individuals strive to fulfil lower-level before, higher-level needs become active.

The lowest level unfulfilled need of an individual serves to motbehaviour.

When this need is fairly satisfied, a new higher-order need becomemotivates the individual. If a lower-order need again becomes arenewed deprivation, it may temporarily become more active again.

Maslows Hierarchy of Needs


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y

To Which of Maslows Needs Does This Adl?


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Appeal?

To Which of Maslows Needs Does This Adl?


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Appeal?

To Which of Maslows Needs Does This AdA l?


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Appeal?

To Which of Maslows Needs Does This AdA l?


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Appeal?



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What are three types of products related to more then one leve

Maslows Hierarchy of Needs?

For each type of product, consider two brands. How do marketattempt to differentiate their product from the competition?


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THANK YOU


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Consumer Perception

Sanjeev Kumar


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Perception:Defination

Individuals act and react on the basis of their perceptions, not oof objective reality.

Therefore, consumers perceptions are more important to a matheir knowledge of objective reality because people make decison their perceptions.

This perception may be based on sensations from the outside win turn may be influenced by past experience or learning, expec

fantasies beliefs, values, personality etc.

Thus, for having a better understanding of the buying behaviouindividuals marketers must examine the importance of perceptintegration with the related concepts.


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Consumer Perception

Perception is the process by which an indivselects, organizes, and interprets stimuli inmeaningful and coherent picture of the world.

. It can be described as how we see the world arus.

Perception is determined by both physiologicapsychological factors.

This is because perception is developed baseprevious experience (learning), feeling and motives


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Elements of Perception

Sensation is the immediate and direct response of the

organs to stimuli.

A stimulusmay be any unit of input to any of these senses. Eof stimuli include products, packages, brand names, advertisand commercials.

Sensory receptorsare the human organs that receive sensor

Their sensory functions are to see, hear, smell, taste and feel.

All of these functions are called into play, either singcombinations, in the evaluation and use of most consumer pr

Elements of Perception: AbsoluteThresho


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p

This is the minimum level of marketing stimuli that is requirednoticed by the receptors of the customers.

In other words, below this level individual receptors would recognize the stimuli or sensation.

This is not only dependent on the stimuli but also on the capabthe receptors.

For example, the distance at which a driver can note a sbillboard on a highway is that individuals absolute threshold.

After an hour of driving any it is likely that no bill board wilimpression because we get used to it.

Getting used to in field of perception refers to adaptSensory adaptation is a problem that causes many advertischange their advertising campaigns regularly.

Elements of Perception: Differential


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Threshold

Differential threshold is the smallest detectable difference betw

values of the same stimulus. This is also referred as JND (Just NDifference).

A German scientist of nineteenth-century, Ernst Weber discovethe just noticeable difference between two stimuli was an amorelative to the intensity of the initial stimulus.

The more intense the stimulus, the more it will need to change

notice the difference.

If you are lifting ten pounds, you only need a little more weight to notice the difference (1 pound to be exact). But if you were lpounds, you will need more weight to notice the difference (10

Elements of Perception: Subliminal


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Perception

When customers are not consciously aware that treceiving marketing stimuli yet they get influenced. Hlevel of stimuli remains above the absolute threshold l

That is, customers receptors receive the stimuli being consciously aware that they are doing so. This pcalled as subliminal perception.

In simple words, It is the process of being exposedbecoming aware of stimuli of which you did not conpay attention.

Discussion Question


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How might a cereal manufacturer

such as Kelloggs use the j.n.d. forFrosted Flakes in terms of: Product decisions

Packaging decisions

Advertising decisions

Sales promotion decisions

Dynamics of Perception


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Dynamics of Perception

Human beings are constantly bombarded with stimuli during every minute aof every day.

Perception is not a function of sensory input alone; rather, perception is the rdifferent kinds of Physical stimulifrom the outside environment and internalon expectations, motives, and learning are based onprevious experiences.

Because each person is a unique individual, with unique experiences, needs, and expectations, it follows that each individuals perceptions are also uniqu

There are three aspects to perceptionselection, organization, and interprstimuli.

Individuals are very selective as to which stimuli they recognize.

They subconsciously organize the stimuli they do recognize according to widely held pprinciples.

They interpret such stimuli (i.e., they give meaning to them) subjectively in accordancneeds, expectations, and experiences.


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Perceptual Selection

Consumers subconsciously exercise selectivity as to the stimu

perceive. This depends on two major factors in addition to the of the stimulus itself first consumers previous experience as it atheir expectationsand second on their motives at the time.

Each of these factors can serve to increase or decreasprobability that a stimulus will be perceived.

l l i


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Perceptual Selection

Nature of the stimulus

Marketing stimuli include an enormous number of variables that afconsumers perception, such as nature of the product, its physical atthe package design, the brand name, the advertisements and comincluding copy claims, choice and sex of model, size of ad, topograposition of print ad or a commercial, and the editorial environment.

Expectations

People usually see what they expect to see, and what they expect usually based on familiarity. Previous experience, or preconditioned marketing context, people tend to perceive products and product ataccording to their own expectations.

Motives

People tend to perceive the things they need or want; the stronger tthe greater the tendency to ignore unrelated stimuli in the environgeneral, there is heightened awareness of stimuli that are relevantneeds and interests and a decreased awareness of stimuli that are irto those needs.

External factors


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External factors that may effect stimuli

Size - A larger size makes it more likely an object will be selected.

Intensity- Greater intensity, in brightness, for example, also increaseperceptual selection.

Contrast- When a perception stands clearly out against a backgrounis a greater likelihood of selection.

Motion- A moving perception is more likely to be selected.

Repetition- Repetition increases perceptual selection.

Novelty and familiarity - Both of these increase selection. When aperception is new, it stands out in a person's experience. When it is famis likely to be selected because of this familiarity.

Selective perception


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p p

The consumers selection of stimuli from the environment is based on thexpectations and motives with the stimulus itself. These factors give rise t

concepts concerning perception. Selective Exposure : Consumers actively seek out messages that they find

which they are sympathetic. And they actively avoid painful or threateningselectively expose themselves to advertisements that reassure them of thepurchase decisions.

Selective attention: Consumers exercise a great deal of selectivity in termsthey give to commercial stimuli. They have a heightened awareness of stheir needs or interests and minimal awareness of stimuli irrelevant to thconsumers are likely to note ads for products that would satisfy their neethose in which they have no interest.

S l ti ti


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Selective perception

Perceptual Defense

Consumers subconsciously screen out stimuli that they find psychologicaeven though exposure has already taken place. Thus, threatening or othedamaging stimuli are less likely to be consciously perceived than are neutthe same level of exposure.

Perceptual Blocking

Consumers protect themselves from being bombarded with stimuli by simout blocking such stimuli from conscious awareness. They do so out ofprotecting because of the visually overwhelming nature of the world in wThe popularity of such devices as TiVo and Replay TV, which enable vieweTV commercials with great ease, is, in part, a result of perceptual blocking

Perceptual Organization


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People do not experience the numerous stimuli they select fro

environment as separate and discrete sensations. People teorganize stimuli into groups and perceive them as unified whol

This methods of perceptual organization simplifies file considfor the individual. This principle of perceptual organization is reas Gestalt psychology. Gestalt is a German word and means paor configuration.

Three of the most basic principles of perceptual organizatiofigure and ground, grouping, and closure.

P t l O i ti


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Perceptual Organization

Figure and ground refers to the interrelationship between the stimu

(i.e., figure) and the environment or context within which it appeground). Contrast is an application of figure and ground. Product ptries to obscure the difference between figure and ground.

Groupingrefers to peoples instinctive tendency to group stimuli togthat they become a unified picture or impression. The perception of sgroups or chunks of information, rather than as discrete bits of infofacilitates memory and recall.

Closure is peoples instinct to organize pieces of sensory inpucomplete image or feeling. Individuals need closure, which means thperceive a stimulus as incomplete, they are compelled to figurcomplete meaning. If a message they receive is incomplete, they coor subconsciously fill in the missing pieces (like answering the questioad shown in Figure 4.10).

Fi d G d


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Figure and Ground

G i


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Grouping

Perceptual Interpretation


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Individuals, in their own unique manner, interpret the stimusaying goes, a person sees what he/she expects to see,

Interpretation of stimuli by individuals is based on texperiences, plausible explanations they can assign, thebeliefs and interests at the time of perception.

For a number of reasons, stimuli can often be weak or stro

prove to be quite ambiguous to individuals. Individuals usuahighly ambiguous stimuli in a way that seem to fulfil persdesires, aspirations, interests, or wishes etc.

The interpretation of ambiguous stimuli by individuals reveaabout them.

Perceptual Distortion


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Physical Appearance: People may or may not conscirecognise that they tend to attribute the qualities, which in

opinion are associated with certain individuals, to others whoresemble those persons.

Stereotyping Stimuli: People tend to form pictures in minds of the meanings of different types of stimuli. stereotyping the stimuli helps them develop expectations a

how specific events, people, or situations will turn out to be. Irrelevant Stimuli: In certain situations consumers are faced

difficult perceptual judgements. In such circumstances they respond to somewhat irrelevant stimuli. For instance, theyconsider the colour of washing machine in making the

purchase decision



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First Impression: First impressions are often lasting evenperceiver is not exposed to sufficient relevant or predictive info

Jumping to Conclusions:Some people seem to have a stronto draw conclusions based on insufficient information. They impatient about examining all the relevant evidence, whicnecessary to draw a balanced conclusion. This is often the rstrong arguments about a product or service are presented firs

Halo Effect: This refers to a tendency to evaluate one attributof stimulus to distort reactions to its other attributes or proper

Consumer Imagery


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An image is a total perception of something that individuals for

processing all the information they are exposed to over time. These inferences are consumers beliefs about products or serv

Consumers have a number of enduring perceptions, or imageparticularly relevant to the study of consumer behavior.

Products and brands have symbolic value for individuals wh

them on the basis of their consistency with their personal pthemselves.

The following section examines consumers perceived iproducts, brands, services, prices, product quality, retail smanufacturers.

Perceived Price


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How a consumer perceives a price (perceived price)as high,

fairhas a strong influence on both purchase intentions andsatisfaction.

Perception of price fairnesscustomers pay attention to the pby other customers (e.g., senior citizens, frequent fliers, affmembers).

There is evidence that customers perceive differential pricing used by some marketers as unfair to those not eligible for tprices. Perceptions of price unfairness affect consumers percproduct value, and ultimately, their willingness to patronize a service.

Perceived Quality of Product


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Perceived Quality of Product

Consumers often judge the quality of a product (perceived quality) on tvariety of informational cues.

Some of these cues are intrinsicto the product or service; others are extrin

Intrinsic cues are concerned with physical characteristics of the produccolor, flavor or aroma.

In the absence of actual experience with a product, consumers often evaluathe basis of extrinsic cues, price, brand image, store image, etc.

Many consumers use country-of-originstereotypes to evaluate products.

Lacking previous purchase experiences may lead to an awareness that hproducts tend to cost more and high-price may become an indicator of hand suspect the quality of low-priced products.

In India a little over a decade ago foreign make meant superior quality.

Perceived Quality of Services


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It is more difficult for consumers to evaluate the quality of service

quality of products. This difficulty arises because of certain unique characteristics of ser

Researchers have concluded that the service quality that aperceives is a function of the magnitude and direction of the gaexpected service and the customers assessment of the servicdelivered.

SERVQUAL, measures the gap between these two services.

Perceptions of high service quality and high customer satisfacthigher levels of purchase intentions and repeat buying. Service determinant of whether the consumer ultimately remains with thor defects to a competitor.

Retail Store Image


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Retail stores have their own images that influence the percepquality of the products they carry.

A study that examined the effects of specific store environmeon quality inferences found that consumer perceptions were minfluenced by ambient factors than by store design features.

Studies show consumers perceive stores with small discountsnumber of products as having lower-priced items than storelarge discounts on a small number of products.

One study showed that frequent advertising that presents larof price specials reinforces consumer beliefs about the competa stores prices.

The type of product the consumer wishes to buy influencesselection of retail outlet; conversely, the consumers evalproduct often is influenced by the knowledge of where it was b

Manufacturers Image


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Consumer imagery extends beyond perceived price and store iproducers themselves.

Manufacturers who enjoy a favorable image generally find thproducts are accepted more readily than those of manufacturea less favorable or even a neutral image.

Researchers have found that consumers generally havperceptions of pioneer brands (the first in a product categoryfollower brands become available.

Studies show that consumers choose brands perceived as simown actual, ideal, social, ideal-social and situational-ideal soThese findings have important implications regarding the possrepositioning brands.

Perceived Risk


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Whenever consumers make decisions to purchase any nethere is an element of uncertainty about the consequen

perception of risk is involved in most such purchases.

Perceived risk is the uncertainty that consumers face wcannot foresee the consequences of their purchase decision

he degree of risk that consumers perceive and their own to

risk taking are factors that influence their purchase strateg Consumers are influenced by risks that they perceive, whet

such risks actually exist. Types of risk include: functiphysical risk, financial risk, social risk, psychological riskrisk

How Consumers Handle Risk


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Consumers seek information

Consumers are brand loyal:.

Consumers select by brand image:.

Consumers rely on store image.

Consumers buy the most expensive moConsumers seek reassurance

Perception and Marketing Strategy


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Make perceptual selection work in your favour

Increase accidental exposure Use the j.n.d

Draw attention to your ad using contrast and other principles Fcreative ways to reduce blocking

Ensure that consumers organize and interpret messages corre

Develop suitable consumer imagery Find ways to reduce percerisk


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Consumer Learning


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Consumer Learning

Marketers are concerned with how indiv

learn because they want to teach them, i

roles as consumers, about products, pro

attributes.

Marketers want their communications to

noted, believed, remembered, and recall

F th th i t t d i


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.

The process by which individuals acqu

purchase and consumption knowledge a

i th t th l t f t l

Elements of Learning Theori


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Elements of Learning Theori

Motivation

Unfilled needslead to motivation

Cues

Stimuli that directmotives

Response

Consumerreaction to a driveor cue

Rein

Increalikelihoresponin the

result

Two Major Learning Theori


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Two Major Learning Theori

Based on observable behaviors (responses)that occur as the result of exposure to stim

Behavioral Learning

Learning based on mental informationi

Cognitive Learning

Behavioral Learning


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Behavioral Learning

Classical/Pavlovian Operant/Instrumental

It is a type of learn

in which an individ

behavior is modifi

its antecedents anconsequences.

It is a process of

behavior modification

made famous by Ivan

Pavlov and hisexperiments

conducted with dogs.

Classical Conditioning by Ivan Pa


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Classical Conditioning by Ivan Pa

A behavioral learning theory according to wha stimulus is paired with another stimulus thelicits a known response that serves to produ

the same response when used alone.
http://e/Consumer%20Behavior/Class%20Lecture/Classical%20Conditioning%20[cc]_(360p).mp4


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Model of Classical Condition
http://e/Consumer%20Behavior/Class%20Lecture/Classical%20Conditioning%20[cc]_(360p).mp4


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Model of Classical Condition

Food and water


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Example


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Example

Dinner aroma

8 O'clock News

You are h


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For Coca-Cola (or any other beverage company):

How effective conditioning can create

f bl t t f k t


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favourable strategy for marketers

The colas (Pepsi and Coke) have used Classical Conditioning very eover the years.

Thirst (An Unconditioned Response) is generated by various enviro

physical factors like heat, sports, workout, dehydration etc. (These

are Unconditioned Stimuli).

Pepsi and Coke have strategically placed and associated their productsabove Unconditioned Stimuli like heat, sports, etc repeatedly.

They have also used key words in their branding like Thanda Matlab

This has played the part of a Conditioned Stimulus which is placed a

the Unconditioned Stimuli every time (hence the sponsorships for m

events).

Over time the Conditioned Stimulus (Cola drink) becomes a signal

Other examples


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Dermi cool Aaya mausam thande thande Dermi

Fair n Lovely winter fairness cream Sardiyo

ikh h t hi b dh

Strategic Applications of Classical Conditi


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g pp

Repetition

Stimulus

generalization

Stimulus

discrimination

Increases the as

between the con

and uncondition

stimulus

Slows the pace

forgetting

d i i

Basic Concepts

Why Did Amul Use Different Ads to Advert

S P d t?


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Same Product?

Repetition of the Message with Varied Ads R

M I f ti P i b th C


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More Information Processing by the Cons

Strategic Applications of

Cl i l C di i i


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Classical Conditioning

Repetition

Stimulusgeneralization

Stimulus

discrimination

Having the sam

response to slig

different stimul

Helps me-tooto succeed

Useful in: Product extens

F il b di

Basic Concepts

Stimulus generalization


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Stimulus generalization

Product line extensions: In product line exten

marketer adds related products to an already establisExample: Palmolive soap is available in pink, white

bluish pack. Maggi noodles are available in different f

Product form extensions: Marketers offer prod

extensionsmeans that the same product is available iphysical forms such as Dettol soap cake and Dettol liq

Product category extensions generally target ne

segments. For examples: Maggi noodles and Mag

chilli sauce.

Wh t I


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What Is

Name of

MarketApplicat

Featured

and WhConcept

Behavio

Learning


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Produc

Catego

Extensi

Stimul

Generaliza

Strategic Applications of


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Classical Conditioning

Repetition

Stimulusgeneralization

Stimulus

discrimination

Selection of a sp

stimulus from s

stimuli

Opposite of stimgeneralization

This discrimina

th b i f

Basic Concepts

Instrumental (Operant) Condition

B h F d i Ski


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Burrhus Frederic Skinner

Skinner believed that the bestway to understand behaviour isto look at the causes of anaction and its consequences. Hecalled this approach operantconditioning

A behavioral theory of learbased on a trial-and-error pro

ith h bit f d th
http://../Documents/Audio%20Video%20Links/operant%20conditioning_(360p).mp4


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A Model of Instrumental Condit
http://../Documents/Audio%20Video%20Links/operant%20conditioning_(360p).mp4


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A Model of Instrumental Condit

Reinforcement of Behavior


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Positive Negative

Positive outcome Negative outco

Strengthen likelihood Encourages beh

Positive reinforcement is a good thing that happens which

behavior Going to the gym made you feel good so you go

day.

N ti t i b d thi th t h hi h

Reinforcement of Behavior


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Extinction Forgetting

A learned response is no longer

reinforced

The reinforcement is f

The link is eliminated between

stimulus and reward

Extinction and forgetting are easily confused. But think o

words mean. If the response, is forgotten it can be brought b

b i If it i ti t it i l d Th li k b


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Strategic Applications of Instrumental Cond


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Customer Satisfaction (Reinforcement

means that each time the customer has a

experience with the product or company

has been positive reinforcement

This is the reason relationship marketin

i



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Reinforcement Schedules can vary They can be (otherwise called Schedules of

reinforcements

Total (or continuous) reinforcement Systemic (fixed ratio) reinforcement

Random (variable ratio) reinforcement sch

M k t ill ft d i f



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Shapingis a procedure in which reinforcemeused to guide a response closer and closer to a

response.

Shaping occurs by having the reinforcement

BEFOREthe behavior occurs.



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Massed versus distributed learning: Shouldlearning and the exposure to the stimuli happ

relatively short period of time or be drawn ou

Media planners are often faced with this deci

when putting together an advertising campaig


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Observational Learnin

(modeling or vicarioulearning)

A process by which individulearn behavior by observingbehavior of others and the

f h b h

Observational Learning

(modeling or vicarious learning


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(modeling or vicarious learning

A process by whichindividuals learn

behavior by observing

the behavior of others

and the consequences ofsuch behavior

Cognitive learning


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g g

Cognitive learning approach has dominfield of consumer behaviour in recen

Learning that takes place as a result of

activity is termed as cognitive learnin Cognitive theorists do not endorse th

that learning is based on repetitiv

l di h d l f li k b

Cognitivism


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g

Grew in response to Behaviorism

Knowledge is stored cognitively as sym

Learning is the process of connecting sy

in a meaningful & memorable way

S di f d h l

Cognitivism in the Classroo


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Inquiry-oriented

projects

Opportunities for thetesting of hypotheses

Curiosity encouraged

Theoretical Models of Cognitive Lea


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Attention Cognitive

Action Conative Purchase

Postpurchase

Evaluation

Trial

Adoption C

Affective

Evaluation

Interest

Evaluation P

K

AwarenessAwareness

KnowledgeInterest

Desire

Innovation

Adoption

Model

Decision-

Making

Model

Tricompetent

Model

I

Promotional

Model

Knowledge

Behavior

Evaluation

Generic

Framework

Measures of Consumer Learn


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Recognition and Recall Measures

Cognitive Response to add

Brand Loyalty

Brand Equity

Recognition and recall


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Recognition and recall tests dewhether consumers remember seeing an

the extent to which they can recall the a

The researcher can use aided recall,would rely on recognition as oppo

unaided recall.

Th b f i hi h

Cognitive Response to add


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To ensure a high level of comprehension, many conduct copy testing either before the advertising

run in media (called pre-testing) or after it appe

testing).

Pre-tests are used to determine which, if any, elemadvertising message should be revised before ma

expenses are incurred.

Post-tests are used to evaluate the effectiveness of

h l d d id if hi h l if

Measures of Consumer Learning Brand L


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Three groups of factors

Personal degree of risk aversion or

variety seeking

The brands reputation and availability

of substitutes

Social group influences

Four types of loyal

No loyalty Covetous loyalty

Inertia loyalty

Premium loyalty


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Consumer Learning


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Learning Objectives


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g j

1. To Understand How

Personality Reflects

Consumers Inner

Differences.


Freudian, Neo-Freudian, and

Trait TheoriesEach Explain

the Influence of Personality

on Consumers Attitudes and

Behavior.


Learning Objectives (contd


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g j (4. To Understand H

Marketers Seek t

Brand Personalit

Traits.

5. To Understand H

Products and SeConsumers Use

Their Self-Image

6. To Understand H

Personality and its natur


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y

Personality refers to the relatively characteristics that differentiate one persanother and that lead people to act in a consispredictable manner, both in different situatover extended periods of time.

Personality is defined as those inner psyccharacteristics that both determine and refleperson responds to his or her environment.

The emphasis in this definition is ocharacteristicsthose specific qualities, a

Personality and its natur


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y

The Nature of Personality: Personality reflects individual differences

Personality is consistent and enduring

Personality can change

Personality Reflects IndividuDifferences


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An individuals personality is a combination of factors; no two individ

exactly alike.

Personality is a useful concept becenables us to categorize consume

different groups on the basis of a sing

or a few traits.

Personality is Consistent and End


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Marketers learn which percharacteristics influence specific coresponses and attempt to appeal to rtraits inherent in their target gro

consumers. Even though an individuals personal

be consistent, consumption behaviovaries considerably because of psycho

Personality Can Change


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An individuals personality may be altmajor life events, such as the birth of

the death of a loved one, a divorce, or

career change. An individuals personality also chan

part of a gradual maturing process.

Theories of Personality


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y

Freudian theory Unconscious needs or drives are at the heart of human mo

Neo-Freudian personality theory Social relationships are fundamental to the form

development of personality

Carl Jungs personality theory-Carl Jung's proposed a typology based upon fodimensions, where each pole represents an opposite and thus illustrates four dichotomies, viz, ExtraIntroversion, Sensing Intuition, Thinking Feeling, andPerceiving.

Trait theory

Freudian Theory


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Id: Warehouse of primitive or instinctual needs foindividual seeks immediate satisfaction

Superego: Individuals internal expression of socie

Freuds Theory: The ID


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y

The id uses the most primitive of thinking pr

Basic biological urges (e.g., hunger, self-prote

Operates on the Pleasure Principle.

Seeks pleasure and avoids pain:

I want whatNOW!

The id operates completely at an unconsciou

No direct contact with reality.

Freuds Theory: The Supere


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y p

Superego: the moral part of personality.

Internalized rules of parents and societ

Superego consists of two parts:

Conscience: notions of right/wrong.

Ego Ideal: how we ideally like to be.

Superego: constrains us from gratifying e

impulse (e.g., murder) because they are i

Freuds Theory: The Ego


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The egoconsists of a conscious faculty foperceiving and dealing intelligently with re

The egoacts as a mediator between the

the superego.

The ego is partly conscious.

Deals with the demands of reality.

Carl Jungs personality theory

A di J ll h S N T d F h


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According to Jung, we all use the S,N,T and F; howone of us varies in their usage and freque

combination of our "preferences" defines our ptype.

S and N determine how a consumer gathers and information about products, while the T and F deterhe makes a purchase decision.

By cross-tabulating the two pairs of psychological diwe can derive four different personality types, vizThinking (S-T), Sensing-Feeling (S-F), Intuiting-Thinand Intuiting-Feeling (N-F).

Each of these reflects variedly in purchase deciconsumption processes. The marketer could

Neo-Freudian Personality The


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Style of life

Feelings of inferiorityAlfred Adler

We establish relationships with ot

reduce tensions

Harry Stack

Sullivan

Social relationships are fundamental to persona


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Personality and Understandi

Consumer Behavior


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Consumer Behavior

Consumer

innovativenessDogmatism

Soc

chara

Need for

uniqueness

Optimum

stimulation

level

Sensa

seek

Personality and Understandi

Consumer Behavior


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Consumer Behavior

Consumer Innovativeness

Willingness to innovate

Further broken down for hi-

tech products Global innovativeness

Domain-specific

innovativeness

Innovative behavior

Dogmatism

Reflects thedegree ofrigidity aperson displaystowards theunfamiliar andtowardsinformationthat is contrary

Social Character


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Social character is a personality trait tha

on a continuum from inner-directed todirected.

Inner-directed consumers tend to rely own inner values or standards in ev

new products and are innovators. Thprefer ads stressing product featurpersonal benefits.

Other-directedconsumers tend to look t


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Need for Uniqueness Consumers who avoid

conforming to expectations

or standards of others

Sensation See The need for varie

and complex sensa

experience. And th

willingness to takeand physical risks f

sensations.


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Optimum Stimulation Level A personality trait that

measures the level oramount of novelty orcomplexity that individuals

seek in their personalexperiences

High OSL consumers tend to

Variety-Novelty Se Measures a consu

degree of variety s

Examples include:

Exploratory PurchBehavior

Use Innovativenes

Vicarious Explorat

From Consumer Materialism to

Compulsive Consumption


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Compulsive Consumption

Fixated consumption behavior

Consumers fixated on certain products orcategories of products

Characteristics:

Passionate interest in a product category Willingness to go to great lengths to secure

objects

Dedication of time and money to collecting

Cognitive Personality Factor


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Market researchers want to understacognitive personality influences co

behavior.

Two cognitive personality traits havuseful in understanding selected asp

consumer behavior. They are:

Need for cognition

Need for Cognition


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This is the measurement of a persons craving for orenjoyment of thinking.

Consumers who are highin NC (need for cognition) alikely to be responsive to the part of an advertisemerich in product-related information of description.

They are also more responsive to cool colors.

Consumers who are relatively lowin NC are more likattracted to the background or peripheral aspects of

They spend more time on print content and havestronger brand recall.

Visualizers versus Verbalizer


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Visualizers are consumers who prefeinformation and products that strevisual.

Verbalizersare consumers who prefer

or verbal information and products thathe verbal.

This distinction helps marketers know w

Consumer Ethnocentrism and

Cosmopolitanism


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Cosmopolitanism

Ethnocentrism

Ethnocentric consumers feel it is wrong to pur

foreign-made products because of the impact

economy. They can be targeted by stressing

nationalistic themes

Cosmopolitanism

Brand Personality


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Personality-like traitsassociated with brands

Examples Tetrapack and freshness

Nike and athlete

BMW is performance driven

Brand personality which isstrong and favorable willstrengthen a brand but not

A Brand Personality Framew


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Product Personality Issue


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Gender

Some products perceived as masculine (coffee and tooth

while others as feminine (bath soap and shampoo)

Geography

Actual locations, like Philadelphia cream cheese and Ariztea

Fictitious names also used, such as Hidden Vall