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CONSUMER BEHAVIOR
1. Introduction
9. Types of consumers
1. Introduction
Consumers differ not only demographically but in their activities and interests too. With all this
diversity around, the marketer has to understand the consumer buying behavior through
systematic consumer research. This activity helps the marketer understand the nature of
Consumer behavior refers to the actions and decision processes of people who purchase
goods and services for personal consumption. Engel, Blackwell and Miniard.
It is the behavior that consumers display in searching for, purchasing, using, evaluating
and disposing of products and services that they expect will satisfy their needs.-
and disposing of products and services. As seen from the definition, the activities
involved are:
Disposing- how consumers get rid off the product. This helps marketers design
Thus, consumer behavior is a rapidly growing discipline that represents a complex and multi-
dimensional process which reflects the totality of consumers decisions with respect to
acquisition, consumption and disposal activities given the various constraints of time, effort and
money. There are two sides of consumer behavior. The final purchase stage which is visible and
the intermediate decision stages that are invisible. Recently, marketers have started considering
wherein the whys and hows of consumption are also studied along with whys and hows of
purchase.
Consumer behavior is rooted in the Marketing concept of 1950s wherein marketers realized the
importance of studying consumer needs and delivering products conforming to them for
consumer satisfaction. Consumer needs and wants became the primary focus of Marketing and
hence the importance of studying their behavior emerged. This was in sharp contrast to the
decision process given their resources (time, effort and money) to be spent on consumption
Example- On studying the consumption behavior of Mr. Sikka with respect to a Close up
toothpaste it is found: what they buy? (Close up toothpaste gel based); why they buy?
(Freshness is the motive); when they buy? (Beginning of every month); where they buy it
from? (Big bazaar retail store); how often they buy it? (5 Family size packets in the beginning
of the month); how often they use it? (Thrice a day) and how they dispose their products?
Consumer behavior has interdisciplinary roots. In that it draws heavily from other disciplines.
Psychology- it is concerned with the study of the individual. It includes studying various
Learning. All these factors are critical to the study of consumption behavior and product
choices.
Sociology- it is concerned with the study of groups. It studies the influence of Group
important to study the group behavior and the extent of influence that it has on the
individual operates in the group. It studies the relevance and importance of reference
Economics- which is the basis for this marketing discipline and provides rationality to
purchase decisions.
6. Why study consumer behavior?
Knowing what this king wants is the primary focus of marketing and delivering it so as to
provide the best perceived value to the consumer is the prime job of any marketer.
It helps in educating consumers about why they buy. It gives them knowledge of their
buying process and makes them more aware and conscious. It also helps consumers
understand policies relating to consumer protection and their rights and duties as a
consumer.
Todays consumer is global. He is different yet the marketer has to find similarities
between these differences so as to segment the consumers and position their product
offerings well.
Consumer behavior is an applied science. To understand consumer behavior, one needs to know
what is going on in the mind of the consumer. There are certain methods of studying consumer
in different situations. Example- the marketer can study the actual purchase
person. Example- the marketer can study the purchase behavior of the consumer
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requires an in depth understanding the consumer needs and decision making process.
involves interactions of thinking, feelings and actions; and involves exchanges between
human beings.
Personal consumer- is the one who buys goods and services for his own use (E.g. a
personal electronic notebook), for the use of the household (E.g. a VCD player), or as a
gift for a friend (E.g. Music CDs). In all these cases, the products are bought for final
agencies and Institutions that buy products, equipments and services in order to run their
organizations. Example- construction equipments bought by Government for
infrastructural development.
10. Role theory - A person belongs to many groupsfamily, clubs, and organizations. The
persons position in each group can be defined in terms of both role and status.
A Role consists of the activities people are expected to perform according to the
Each role carries a Status reflecting the general esteem given to it by society.
In all cases buyers are not necessarily the users of the product or service. Whenever consumer
behavior occurs in the context of a multi-person household, several different tasks or roles may be
performed in acquiring and consuming the product or service. Roles people play in the decision-
making process:
Initiator: The person who first determines that some need or want is
Decider: The individual with the power and/or financial authority to make
Buyer: The person who concludes/ actually makes the purchase transaction
User: The person (or persons) who actually uses the product or service and
can be the gatekeeper and buyer; whereas the child can influence the choice and the decider too.
Different members can perform each of these roles either singly or collectively. The criteria they
use to evaluate products or services in one of the roles may be quite different from those used in
another role.
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Indian market is abundant with consumer business opportunity. India is a market of over one
billion consumers who are growing at 2% per annum. It is home to 1.8 billion households with a
family size of average 5.7 persons per family. Just at around 60 years of post independence, India
is a rich country with growing opportunity. The Indian consumers profile is undergoing a change
Increasingly affluent, with bulging middle class: NCAERs study on The great Indian
middle class shows that the top of the pyramid is growing at the much faster rate, even
as the growth at the bottom of the pyramid is slowing down. Post the liberalization of
Indian economy, the income profiles of Indians are going rapid shift. More and more
households are shifting to Middle and Higher Income Groups, thereby increasing the
youngest age profile. More than half of Indians are below the age of 25 years. There are
lot of young people in different income segments and locations. The young India is
redefining value perceptions almost concurrently upgrading its aspirations and spending
education, personal transportation, and leisure while downgrading (in terms of spending
levels) on food and grocery, clothing, and jewellery. The young India is redefining its
relationship with brands -- adopting new ones while discarding traditional ones.
1981, approximately 44% of Indians were literate while in 2001, the literacy ratio
improved significantly to 65%. The focus is also shifting on enhancing womens literacy
Higher adaptability to technology: Among durable goods, high-tech luxury items are
increasingly in demand. The number of Indians who own or use mobile phones, for
example, has grown 1,600%not surprising in a country that is adding more than 3
million subscribers a month. The number of people who own or use computers or laptops
is up 100%, albeit from a very small base. Ownership of music systems and televisions is
urban areas. The growth rate of urban population is 3.2 % per annum.
Increased awareness levels: Indian media and entertainment industry is undergoing
unprecedented times. The media reach is rapidly growing, with around 80% media
spiritual people who reject materialistic values. But, now Indians are more motivated than
ever by personal ambition and a desire for material success, and they put in the hours it
takes to achieve those goals. Indians have developed a mindset towards consumption
rather than saving. Although long-term plans remain a high priority, lifes pleasures in
the here and now have gained importance over the past decade. Indians desire to set
money aside for electronics and durables has grown so dramatically that it has nearly
caught up with their desire to save for their childrens education. Travel and
consumers to cater to. In this context, India has an abundance of consumers everywhere,
rich or poor. There is market to sell luxury goods as well as goods that are value for
money.
Changing family profiles: Indians are becoming more mobile with respect to work
places. Consequently, more and more Indians are shifting places to newer locations. This
joint family staying together. Children are getting more say in consumer decision making
process.
Retail revolution: The young India is redefining the shopping high street, giving
shopping/entertainment/eating, as and where such options make their presence. With over
600 new shopping malls likely to make their debut in the next five to six years, the entire
consumer shopping behavior across the country would undergo a very dramatic change.
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In what ways is the Indian consumer changing? What should the marketers do in
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Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
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UNIT 1: LESSON 2
6. Review questions
7. Further readings
1. Four views of Consumer decision making-the views as to why (how) individuals behave as
they do are:
one of them and identifying the one best alternative given time, cost and efforts
constraints. It does not appear to be a practical view because in reality people are
product alternatives and then making a selection on the basis of evaluating them.
viewed as either receptive to or actively searching for products and services that
fulfill their needs. The focus is on the processes by which the consumers seek
emotional purchase decision, less emphasis is placed on the search for pre
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Consumer decision process is a road map of consumer's minds that marketers and managers can
use to help guide product mix, communication and sales strategies (Engel, Kollat & Blackwell):
Buyer behavior is the decision making process and acts of individuals or organizations involved
in buying and using products or services. Consumer decision making comes about as an attempt
to solve consumer problems. A problem refers to "a discrepancy between a desired state and an
ideal state which is sufficient to arouse and activate a decision process." Thus, problems can be
major (e.g., a consumer has been fired and is without a job) or minor (e.g., the consumer lacks an
eraser necessary to take an exam the next day), and the broader and more ambiguous a problem
is, the more potential solutions are generally available. The actions a person takes in purchasing
and using products and services includes the mental and social processes that precede and follow
Buyers reactions to a firms marketing strategy has a great impact on the firms success.
The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when and
Marketers can better predict how consumers will respond to marketing strategies
Behind the visible act of making a purchase lays a decision process that must be investigated. The
Buying Decision is process rather than a single act. The purchase decision process is the stages a
buyer passes through in making choices about which products and services to buy. Consumers
complete a step-by-step process when making purchase decisions. There are certain stages of this
actual, situation, explicitly or implicitly, to some desired situation. In terms of the "big
picture," what is compared may be the totality of ones lifestyle. Once a discrepancy is
which case a search for solutions is initiated. Once the problem is recognized, the
the consumer will go about satisfying the need. However, the presence of need
recognition does not automatically activate some action. This will depend on two factors.
First, the recognized need must be of sufficient importance. Second, consumers must
believe that a solution to the need is within their means. If need satisfaction is beyond a
Problems come in several different types. A problem may be an active one (e.g., you
have a headache and would like as quick a solution as possible) or inactive-- you are not
aware that your situation is a problem (e.g., a consumer is not aware that he or she could
have more energy with a new vitamin). Problems may be acknowledged (e.g., a
consumer is aware that his or her car does not accelerate well enough) or
unacknowledged (e.g., a consumer will not acknowledge that he or she consumes too
much alcohol). Finally, needs can be relatively specific (generic), as in the need for
enjoyment (which can be satisfied many different ways), or specific, as in the need for
professional attire to wear at a new job. Need recognition can be triggered by internal or
external stimuli. In the former case, one of the consumer's personal needs - hunger, thirst,
rises to a threshold level and becomes a drive. In the latter case, a need is aroused by an
can be:
their attainment of the desired state of affairs. It is concerned with seeking value. The
information search stage clarifies the options open to the consumer and may involve:
a. Internal search: Buyers search their memories for information about products that
might solve their problem. So, these are based on what consumers already know.
Example- when Mr. X faces a headache and body pain, he remembers Crocin
pain reliever pills as a solution. This is a part of his memory as a result of a prior
of mouth) or use other sources (such as advertisements now sought out or yellow
The value customers feel they will gain from searching versus the cost
of searching.
The role of marketers during the information search step of the consumer decision-making
process is to make the information consumers want and need about their product easily
accessible.
alternatives for possible purchase. Example- for buying a color TV, the
consideration set may involve brands like- Videocon, Akai, Sony and Phillips.
a buyer. Example- Picture quality, sound effects, looks, price, warranty and
service conditions.
c. Framing the alternatives- Describing the alternatives and their attributes in a
The Product features (also called ATTRIBUTES) that you are looking for can be of
two types:
d. Objective attributes: real features of the product (color, brand, size, model #,
price)
set.
One can use a Multi attribute model to evaluate the alternatives. It involves following
steps:
attribute
the circumstances in the marketplace remain stable, the decision to purchase will lead to
an actual purchase. However, the attitudes of others and unanticipated situational factors
can intervene between the purchase intention and the purchase decision: The others are
often the members of the family or good friends. Unexpected situational factors are for
example illness, loss of the job etc. A consumer who decides to execute a purchase
intention will be making up to five purchase sub-decisions including brand decision
(what), vender decision (where), quantity decision (how many), timing decision (when)
and payment decisions (how to pay). Once youve examined the alternatives, you still
considerations
Terms of sale
Return policy.
evaluation stage
store atmosphere
time pressure
a sale
5. Post purchase- it is concerned with Value in consumption or use. After buying a product,
the consumer compares it with expectations and is either satisfied or dissatisfied. Satisfaction
depends on the expectations prior to purchase and the performance of the item. It is:
SATISFACTION
Shortly after the purchase of an expensive product, the post-purchase evaluation may result in
cognitive dissonance. This, in very simple terms, can be understood as doubts that occur because
the consumer questions whether the right decision was made in purchasing the product. Since
such psychological discomfort is not pleasant, the consumer will be motivated to act to reduce the
amount of dissonance he/she is experiencing. Thus, a consumer may attempt to return the product
or may seek positive information about it to justify the choice. An important role of marketing,
therefore, is reminding the consumers that they have made the correct decision.
Consumer purchase
decision process
Psychological Socio cultural
influences Problem recognition influences
Motivation Personal
Perception Information search Reference groups
Personality Family
Learning Alternative evaluation Social class
Lifestyle Culture
Values, beliefs and Purchase decision Sub culture
attitudes
Post-purchase behavior
Situational influences
Purchase task
Social surroundings
Physical surroundings
Temporal effects
Antecedent states
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2. Use of consumer decision rules in product/ brand evaluations- consumer decision rules
are procedures used by consumers to facilitate brand (or other consumption related)
each relevant attribute and computes a weighted or summated score for each
brand. The computed score reflects the brand's relative merit as a potential
purchase choice. The assumption is that the consumer will select the brand that
attribute. For example, a positive assessment of the energy savings made possible
b. Non compensatory decision rule- these rules do not allow consumers to balance
some other attribute. For instance, in the case of an energy-saving light bulb, the
product's negative (unacceptable) rating on its light output would not be offset by
a positive evaluation of its energy savings. Instead, this particular light bulb
rules are:
each attribute. If any particular brand falls below the cutoff point on any
considered.
ii. The disjunctive rule- The disjunctive rule is the "mirror image" of the
may be higher than the one normally established for a conjunctive rule).
iii. The lexicographic rule- the consumer first ranks the attributes in terms of
attributes), it is selected and the process ends. When there are two or
second highest-ranked attribute (and so on), until reaching the point that
attribute.
c. Affect referral decision rule- It is likely that for many purchase decisions,
unnecessary. Instead, the consumer would simply select the brand with the
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also represents an individuals intensity of interest in a product and the importance of the product
for that person. There can be two levels of involvement. These are:
High involvement- it is characterized by purchases of high importance, with high
person generally is not highly involved and purchases it as a part of a routine purchase.
types:
making process in the case of high involvement purchases. The process employed
for buying a new house. The marketing implications for this are:
user programs)
Limited problem solving-it involves moderate efforts spent in search and evaluation.
The process that buyers use when purchasing products occasionally or when they
person buying shoes or clothing look for options and new brands.
Routine problem solving-it involves very little search or evaluation as in the case of
may lead to development of loyalty. The marketing implications for this are:
o New entrants into the market must try to get into consumers evoked set
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Buyers purchase decisions are influenced by his cultural, social, personal and psychological
factors.
Cultural
Culture Social
Reference Personal
Groups
Subculture Age and lifecycle Psychological
stage
Family Occupation Motivation
Economic Perception Buyer
circumstances
Social class Life style Learning
Roles and status Personality and Beliefs and
self concept attitudes
There are certain factors that influence buying behavior. These are:
The purchase task- it is the reason for engaging in the purchase decision
Social surroundings- it is concerned with the presence of others when the
Psychological influences-
Motivation- is the force that causes action towards satisfaction of the needs. It is
based on the premise that the needs are hierarchical. These needs are broadly:
o Safety needs- these are concerned with self preservation and physical
well being
o Social needs- these are concerned with love, respect, achievement and
status
concept, which is the way people see themselves and the way they believe others
see them.
Learning- it is concerned with behaviors that are the result of repeated experience
belongs
be identified with
function as consumers
Family life cycle- The distinct phases that a family progresses through
Decision making within the family-concerned with the styles and the
which people sharing similar values, interests, and behavior are grouped. Its
determinants are;
occupation,
Education.
h. Culture-Culture refers to the set of values, ideas and attitudes that are accepted by
i. Sub culture-groups within the larger, or national, culture with unique values,
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6. Review questions
What are Decision rules? How do these help in the evaluation of the product
alternatives?
Explain the various types of consumer decision making based on the level of
involvement.
What are the factors that influence the consumer buying decision process and in what
ways?
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7. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
___________________________________________________________________________
UNIT 1: LESSON 3
MARKET SEGMENTATION
1. Introduction
8. Review questions
9. Further readings
1. Introduction
Companies today recognize that they cannot appeal to all buyers in the market place or at
least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and
too varied in their needs and buying practices. Moreover, the companies themselves vary
widely in their abilities to serve different segments of the market. Rather than trying to
compete in an entire market, sometimes against superior competitors, each company must
identify the parts of the market that it can serve best and most profitably. Thus, most
companies are more selective about the customers with whom they wish to connect. As a
solution, comes the concept of Market Segmentation. It involves breaking the market down
into distinct groups of buyers. Markets consist of buyers, and buyers differ in one or more
ways. They may differ in their wants, resources, locations, buying attitudes, and buying
practices. Through market segmentation, companies divide large, heterogeneous markets into
smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs. There is a movement from Mass marketing to
Target marketing.
c. Market positioning- setting the competitive positioning for the product and
3. Levels of Market segmentation- Because buyers have unique needs and wants, each
serve buyers individually, many others face larger numbers of smaller buyers and do not
find complete segmentation worthwhile. Instead, they look for broader classes of buyers
who differ in their product needs or buying responses. Thus, market segmentation can be
promoting about the same product in about the same way to all consumers. It was
felt that it creates the largest potential market, which leads to the lowest costs,
which in turn can translate into either lower prices or higher margins. However,
Marketing isolates broad segments that make up a market and adapts its offers to
more closely match the needs of one or more segments. The purpose of
segmenting the market is to find the best customers for a particular company and
people who have something in common that make them a good target market for
marketing. The company can market more efficiently, targeting its products or
can serve best and most profitably. The company can also market more
carefully defined segments. The company may face fewer competitors if fewer
segment, typically a small market whose needs are not well served. Niche
defining a group with a distinctive set of traits who may seek a special
combination of benefits. Whereas segments are fairly large and normally attract
several competitors, niches are smaller and normally attract only one or a few
competitors. Niche marketers target a very specific group of customers. They try
to provide the maximum amount of value to customers that are the best possible
fit for their product or service. Such companies are betting that the advantages
they offer to that group will offset the higher prices niche marketers generally
well that their customers willingly pay a price premium. Both large and small
companies can engage in niche marketing. A large company can create separate
product lines and retail outlets for specific niche markets. A small company can
tailor its entire operation to the needs a select group of highly profitable
customers.
d. Local marketing- Some companies think the best way to focus their energies is to
target local markets. By this way, the high cost of national distribution and
promotion can be avoided while specializing in the specific needs and wants of a
defined by the fact that all its members live in the same geographical area.
e. Micro marketing- Segment and niche marketers tailor their offers and marketing
programs to meet the needs of various market segments. At the same time,
however, they do not customize their offers to each individual customer. Thus,
segment marketing and niche marketing fall between the extremes of mass
products and marketing programs to suit the tastes of specific individuals and
locations.
4. Basis of Market Segmentation- There are two types of segmentation variables: Needs and
Profilers. The basic criteria for segmenting a market are customer needs. To find the
gender, income) that can be used to inform a segmentation exercise. The major variables
sales efforts to fit the needs of geographical areas (regions, cities, and even
for multi-national and global businesses and brands. Many such companies have
regional and national marketing programs, which alter their products, advertising
and promotion to meet the individual needs of geographic units. These segments
i. Regions- in India one can think of major regions- North, South, East and
level.
iv. Climate- geographic areas which remain hot or cold or have moderate
climatic conditions.
variables such as age, gender, family size, family life cycle, income, occupation,
education, religion, race, and nationality. Demographic factors are the most
popular bases for segmenting customer groups. One reason is that consumer
needs, wants, and usage rates often vary closely with demographic variables.
Another is that demographic variables are easier to measure than most other
types of variables. Even when market segments are first defined using other
be known in order to assess the size of the target market and to reach it
efficiently. Demographic variables are easier to measure than most other types of
i. Age and Life cycle- Age and life cycle segmentation consists of offering
when using this form of segmentation. While certain age and life cycle
life cycle, health, work or family status, needs, and buying power.
Consumer needs and wants change with age. Some companies use age
ii. Gender- calls for dividing a market into different groups based on sex.
This segmentation form has long been used for clothing, cosmetics,
and travel have long used this form of segmentation. Many companies
Using this form, marketers must remember that they do not always have
to target the affluent. Other income groups are also viable and profitable
market segments.
c. Psychographic segmentation- It calls for dividing a market into different groups
previously seen in, lifestyle also affects peoples interest in various goods, and
the goods they buy express those lifestyles. This method of segmentation is
consumer demand patterns. Lifestyles are the ways in which people live
and spend time and money. When we talk of Lifestyles, we can talk
groups based on the way they respond to, use or know of a product. It involves
occasions when buyers get the idea to buy, actually make their purchase,
into groups according to the different benefits the consumers seek from
the product.
iii. Loyalty- marketers can segment customers into those who buy one brand
companies try to segment their markets into those where loyal customers
users, potential users, first-time users, and regular users of a product are
v. Usage rates- The categories involved might be light, medium, and heavy
user groups.
music etc.
brands.
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characteristics:
a. Measurability- is the degree to which the size, purchasing power, and profiles of
marketing mix variables and their segmenting dimensions. The segment must be
and served
large or profitable.
f. Action ability- is the degree to which effective programs can be designed for
must look at three factors: segment size and growth, segment structural attractiveness,
and company objectives and resources. Based on evaluation the company can decide to
and go to the whole market with one offer. This mass-marketing strategy focuses
The company designs a product and a marketing program that will appeal to the
largest number of buyers. It relies on mass distribution and mass advertising, and
decides to target several market segments or niches and designs separate offers
for each. By offering product and marketing variations, these companies hope for
higher sales and a stronger position within each market segment. Developing a
stronger position within several segments creates more total sales than
increases the costs of doing business. Developing separate marketing plans for
market segments with different advertising increases promotion costs. Thus, the
company must weigh increased sales against increased costs when deciding on a
the firm goes after a large share of one or a few segments or niches. Concentrated
marketing provides an excellent way for small new businesses to get a foothold
firms achieve strong market positions in the segments or niches they serve
because of their greater knowledge of the segments' needs and the special
reputations they acquire. They also enjoy many operating economies because of
chosen, firms can earn a high rate of return on their investments. At the same
market segment can turn sour. Or larger competitors may decide to enter the
same segment.
d. Counter segmentation- it is a strategy used when companies find that they must
reconsider the extent to which they are segmenting their markets may be because
some segments have contracted over time. The company seeks to discover a
more generic need or consumer characteristic that would apply to the members of
two or more segments and recombine those segments into a larger single segment
that could be targeted with an individually tailored product or promotional
campaign.
7. Benefits of Market Segmentation- the following are the major benefits of market
segmentation:
offers for each segment makes sense and provides customers with a better
solution.
points on the life cycle, a firm can design its offerings to cater to their changing
message to a relevant customer audience. If the target market is too broad, there
is a strong risk that (1) the key customers are missed and (2) the cost of
markets, the target customer can be reached more often and at lower cost.
8. Review questions
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9. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
_______________________________________________________________________
UNIT 2: LESSON 4
1. What is motivation?
5. Nature of Motivation
1. What is motivation?
Motivation is an internal state that drives us to satisfy needs. Once the need is activated, a
state of tension exists that drives the consumer toward some goal that will reduce this
Motivation can be described as the driving force within individuals that impels them to
action. This driving force is produced by a state of tension, which exists as the result of
unfulfilled need. Individuals strive both consciously and subconsciously to reduce this
tension through behavior that they anticipate will fulfill their needs and thus relieve them
of the stress they feel. The specific goals they select and the patterns of action they
undertake to achieve their goals are the results of individual thinking and learning.
The following figure presents a model of the motivational process. It portrays motivation as a
state of need induced tension that drives the individual to engage in behavior that he or she
believes will satisfy the need and thus reduce the tension. Whether satisfaction is actually
Learning
Tension
reduction
For instance, if a high school girl expects to become a great tennis player by wearing the same
brand of sinkers that Martina Hingis wears, she is likely to be disappointed: if she takes tennis
lesson and practices diligently, she may succeed. Because without practice only wearing the same
thing wont bring success for her or wont satisfy her need.
The specific goals that consumers wish to achieve, and the courses of action they take in order to
attain these goals are selected on the basis of their thinking processes (cognition) and previous
learning.
Every human activity performed is based on some motive or Need. A Need can be visualized as
a feeling or a desire to have something that is lacking. The activity thus undertaken helps in
removal of that lacking thing and thus provides satisfaction to the person concerned. For
example- the person is thirsty. He feels an immediate lack of water. So, water becomes his Need
A need is an unsatisfactory condition of the customer that motivates him to take some action so as
to fulfill the need and make the condition better. A Want is a desire to obtain more satisfaction
than is absolutely needed to improve an unsatisfactory condition. For example, a person who is
thirsty requires something to drink so as to quench the thirst. This is a need. Now, instead of
water, if he desires to have a soft drink, then this soft drink becomes his Want.
The term Motivation that we shall study, is concerned with such Needs, Drives and Goals
and would operate at subconscious level. Needs are of following two types:
Innate needs: Innate needs are physiological (that is biogenic); they include the needs for
food, water, air, clothing and shelter. The biological needs are considered primary needs
or motives.
Acquired needs: These may include needs for self-esteem, prestige, affection, power and
learning. Because the acquired needs are generally psychological they are considered
secondary needs or motives. They result from the individuals subjective psychological
Generic goals: The general classes or categories of goals that consumers see as a way to
fulfill their needs. If a person tells his parents that he wants to get a graduate degree, he
Product specific goals: The specifically branded products and services that consumers
select as their goals are called product specific goals. For example if that person says he
wants to get a graduate degree in engineering from MIT/BUET, his goal has become
product specific.
Means-end analysis is another way to view the needs-goal paradigm. Individuals set desired ends
(goals) on the basis of their personal values and they select means (or behaviors) that they believe
will help them achieve their desired ends. Take the personal value good health. An individual
may see certain behaviors (e.g. exercise, proper nutrition, cleanliness) as the means to achieving
good health (the goal or desired end) a marketer of specific products within the means product
category (e.g. home exercise equipment, low-fat foods, or anti bacterial soaps) would want to
influence people who are concerned with the goal of good health to use its specific product to
A positive goal is one toward which behavior is directed; thus it is often referred to as an
approach object.
A negative goal is one from which behavior is directed away, and is referred to as an
avoidance object.
For example: a middle-aged woman may have a positive goal of fitness and joins a health club to
work out regularly. Her husband may view getting fat as a negative goal, so he joins a jogging
club. The wifes actions are designed to achieve the positive goal of health and fitness in the latter
Positive and Negative Motivation: We may feel a driving force toward some object or condition,
or a driving force away from some object or condition. For example: a person may be impelled
toward a restaurant to fulfill a hunger need and away from motorcycle transportation to fulfill a
safety need. However, although positive and negative motivational forces seem to differ
dramatically in terms of physical (and sometimes emotional activity) they are basically similar, in
Rational versus Emotional Motives: Rational motives imply that consumers select goals based on
totally objective criteria, such as size, weight, price or miles per gallon. Emotional motives imply
the selection of goals according to personal or subjective criteria for example; pride, fear,
affection, and status etc. Subjective or emotional criteria do not maximize utility or satisfaction.
But the assessment of satisfaction is a very personal process, based on individuals own need
rational form of consumer behavior if the consumer will feel better about herself for wearing it. If
the behavior does not seem rational to the person at the time it is undertaken, obviously he or she
5. Nature of Motivation
Needs and goals are constantly growing and changing in response to an individuals physical
condition, environment, interaction with others and experiences. As individuals attain their goals
they develop new ones. If they do not attain their goals, they continue to strive for old goals, or
they develop substitute goals. Some of the reasons why need-driven human activity never ceases
Many needs are never fully satisfied: they continually impel actions designed to attain or
maintain satisfaction. Most human needs are never fully or permanently satisfied. For
assistant to the CEO of Liver Brothers, but this small taste of power may not sufficiently
satisfy her need; thus she may strive for her own decision-making position in the
organization. In this instance temporary goal achievement does not adequately satisfy the
need of power, and the individual strives harder in an effort to satisfy the need more fully.
As needs become satisfied, new and higher order needs emerge that cause tension and
induce activity. For example, a man who has largely satisfied his basic physiological
needs my turn his efforts to achieving acceptance among his new neighbors by joining
their political clubs and supporting their candidates. Once he is confident that he has
larger house. Marketers must be familiar to changing needs. Car manufacturers who
continually promote the prestige values of their automobiles may fail to recognize that
consumers often look beyond material wealth to satisfy their needs for prestige-for
example, to charitable gift giving or to public service. For this reason, manufacturers of
luxury cars stress different need satisfaction (such as family enjoyment or safety) as
People who achieve their goals set new and higher goals for themselves. Individuals
who normally achieve their goals usually set new and higher goals; that is they raise their
levels of aspiration. This may be due to the fact that their success in reaching lower goals
The substitute (alternative) goal may not be as satisfactory as the primary goal; it may sufficient
to drive out uncomfortable tension. Continued deprivation of a primary goal may result in the
substitute goal assuming primary goal status. A woman who cannot afford a Mercedes may
convince herself that a Maruti Suzuki has an image she clearly prefers. For example a man who
has stopped drinking whole milk because he is dieting may actually begin to prefer skim milk.
Everyone has experienced the frustration that comes from the inability to attain a goal. The
barrier that prevents attainment of a goal may be personal to the individual (e.g. limited physical
react differently in frustrating situations. Some people manage to cope by finding their way
around the obstacle. Those who are less adaptive may regard their inability to achieve a goal as a
personal failure.
In the event of frustration, such people are likely to adopt a Defense Mechanism to protect their
egos from feeling of inadequacy: For example: A young woman may desire for a European
vacation she cannot afford. The coping individual may select a less expensive vacation trip to
Disneyland or to a national park. The person who may not cope may react with anger toward her
boss for not paying her enough money to afford the vacation she prefers or she may convince
herself that Europe is unreasonably expensive this year. These last two possibilities are examples,
possible reasons for being unable to attain their goals. For example, if a person decided to
purchase Lexus but when he went to the showroom he found that the price exceeds his
budget then he might convince himself to purchase another car that is affordable for him
this time and next time he will buy Lexus when he gets promotion.
immature behavior. A shopper attending a bargain sale, for example may fight over
merchandise and even tear a garment that another shopper will not surrender rather than
Withdrawal: Frustration is often resolved by simply withdrawing from the situation. For
instance who have difficulty achieving officer status in an organization may simply quit
that organization.
blame of his or her own failures or inabilities on other objects or persons. For example,
the driver who has an automobile accident may blame the other driver or the condition of
the road.
Autism: This refers to thinking that is almost completely dominated by needs and
emotions, with little effort made to relate to reality. Such day dreaming or fantasizing
a frustration and then overcomes the problem by using the advertised product. If the
viewer can identify within the frustrating situation, he or she may very likely adopt the
proposed solution and buy the product advertised. For example, the people who are
frustrated with the aging appearance to identify with people who have had cosmetic
surgery. Or those people who are suffering from excessive hair fall might like to have
hair grafting.
Repression (oppression): Individuals may forget a need; that is they force the need out of
their conscious awareness. For example, a couple who cannot have children may
surround themselves with plants and pets. The wife may teach school or work in a
library; the husband may do volunteer work or involved with any social welfare
organization.
Most of the individuals specific needs are dormant much of the time. The arousal or stimulation
of particular set of needs may be caused from physiological, emotional, cognitive or by stimuli in
Physiological Arousal: Bodily needs at any one specific moment in time are based on the
shivering.
needs. People who are bored or frustrated are trying to achieve their goals often engage in
daydreaming. These thoughts tend to arouse dormant needs, which may produce
uncomfortable tensions that drive them into goal-oriented behavior woman who
needs. An advertisement that provides reminders of home might trigger instant desire to
speak with ones parents. This is the basis for many long distance telephone companies
like, Grameen Phone campaigns that stress the low cost of international long distance
rates.
often activated by specific cues in the environment. Without these cues, the needs might
remain hidden. For example, he 6 oclock news, the sight or smell of bakery goods, fast
food commercials on television, the end of the school day all of these may arouse the
need for food. In such cases, modification of the environment may be necessary to
An early thinker insofar as motivation is concerned was the psychologist, Sigmund Freud who
lived between 1856 and 1939. His theories have been criticized since, but as a theorist, his
theories are of fundamental value. He was responsible for identifying three levels of
consciousness:
The conscious which includes all sensations and experiences of which we are aware;
The pre-conscious which includes the memories and thoughts which we have stored from
Within these levels of consciousness there are mental forces at work attempting to reconcile our
instincts with the social world in which we live and these are not always in accord so we
The Id which is the reservoir for all our physiological and sensual instincts. It is selfish
The superego which develops as we grow and learn from family, friends, teachers and
other influences. It functions as our internal representation of the values and morals of the society
in which we have grown up. It is a potent force and comes into conflict with the demands made
The ego which attempts to resolve the conflict between the id and the superego and tries
to redirect our id impulses into socially and morally acceptable modes of expression.
Marketers are interested in motivation when it relates to purchasing behavior. This behavior
relates to the motive for wishing to possess the goods or services in question, and it has been
termed goal-related behavior. For a motive to exist there must be a corresponding need.
Motives like hunger, thirst, warmth and shelter are physiological. Others, like approval, success
and prestige are psychological. Motives like staying alive are instinctive whilst motives like
cleanliness, tidiness and proficiency are motives that are learned during life. We can also discern
between rational and emotional motives. Most purchasing decisions are a composite of such
motives, quite often a deciding factor might be price which is of course more of an economic
restriction than a motive. It can, therefore, be seen that a number of motives might be at play
when making a purchasing decision - some motives stronger than others - and the final decision
In 1954 the psychologist Abraham Maslow put forward his classic hierarchy of needs which is
shown in the figure below. This hierarchy is now central to much thinking in buyer behavior.
Physiological needs are concerned with self preservation and these are the basic needs of life
involving those elements required to sustain and advance the human race. Safety needs relate to
protection against danger and deprivation. Once the more basic needs have been satisfied
behavior is influenced by the need for belonging, association and acceptance by others. In many
texts the next two needs are put together, but here we have separated respect and self esteem in
terms of confidence, competence and knowledge and have then placed achievement in terms of
qualifications and recognition above this. The final need is what Maslow termed self
actualization which means self-fulfillment in terms of becoming all that one is capable of being
will move towards satisfying higher order needs towards the apex of the pyramid and look
increasingly for satisfactions that will increase status and social acceptability. When the apex of
the pyramid has been reached and other satisfactions have been achieved the prime motivation is
then one of acquiring products and accomplishing activities that allow self expression. This can
be in the form of hobbies, particularly collecting, which may have been desired for a long time,
but have been neglected until the lower order needs have been satisfied. It is of course not
possible to formulate marketing strategies on the hierarchy theory on its own. Its real value is
that it suggests that marketers should understand and direct their effort at the specific needs of
their customers, wherever the goods one is attempting to promote is in the hierarchy.
Maslow was not the only theorist to focus upon human needs as the motivating force behind
human behavior. McGregor argued that two sets of theories motivate people and these he labeled
Theory X and Theory Y. Such motivations apply principally to the place of work, but the
workplace is where attitudes and opinions are accumulated, so its relevance to marketing is in an
indirect sense.
People have an inherent dislike for work and will avoid it if possible;
because of this, they must be coerced, controlled, directed and threatened with
want security.
People are not naturally passive or resistant to organizational needs. They have become
Motivation and the capacity to develop and assume responsibility are all present and it is
their task to arrange conditions and methods of operation so that people can achieve their own
If the right conditions prevail, individuals will not only accept responsibility. They will
There are thus two ways in which human behavior can be interpreted, depending upon whether
the observer assumes Theory X or Theory Y. What McGregor argued was that management by
control (Theory X) was based on an inaccurate set of negative assumptions and that organizations
would work more effectively if management by objectives (MBO) or Theory Y was applied.
theory. He believed that performance is at its pinnacle when people are satisfied with their jobs
as long as the necessary resources are provided to carry out this work effectively. Satisfaction
with work and personal happiness do not necessarily work in harmony, but when they are and
when the person is stretched to the limits of his or her ability then there may be a feeling of self
actualization. Whilst this feeling might be more evident in recreational or home situations, it is
less common in the workplace because of the conditions and deadlines imposed in an
motivators and these he distinguishes from another set of factors termed hygiene factors.
Motivators can positively contribute to satisfaction at work, whereas hygiene factors cannot
promote satisfaction, but they can prevent dissatisfaction. He uses the medical analogy to
describe hygiene factors and cited the case of unhygienic conditions as being a source of infection
that may make a person unhealthy. In an organization, hygiene factors include financial reward;
supervision; working conditions; company policy; status and relationships with colleagues.
advancement; responsibility; the job itself. It can be seen that motivating factors are those that are
part of the job whereas hygiene factors are more concerned with the job environment
______________________________________________________________________________
How can the understanding of the motivation process be of use to the marketer.
______________________________________________________________________________
12. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
________________________________________________________________________
UNIT 2: LESSON 5
PERCEPTION
1. What is perception?
2. Elements of perception
3. Dynamics of perception
5. Review questions
6. Further readings
1. What is perception?
Reality is different for each individual. What is reality for each one of them is the result of their
Perception. Understanding perception is important because the acts of the individuals are the
result of what and how they perceive things. In the field of consumer behavior, perception plays a
significant role in the buying process and this necessitates studying it.
Perception is the process of selecting, organizing and interpreting information inputs to produce
meaning out of it. These information inputs are called Stimulus. A stimulus is any unit of input
to a sensory receptor. Perception describes how an individual sees the world around him.
Perception is developed as a result of each individuals attitudes, values and expectations. Since
each individual is unique in terms of these inner values, no two individuals would react to the
Following are some of the elements that underlie the perception process:
SENSATION
Sensation is the immediate and direct response of the sensory organs to the stimuli. As
is the human organ ( eye to see, nose to smell, ear to hear, mouth to taste or skin to feel )
that receive the sensory input. Whenever a consumer comes across a product offering
these sensory receptors play a role in evaluating the offering. Human sensitivity is the
consistently noisy environment, a little more noise from somewhere would hardly have
The point at which a person can detect a difference between something and nothing
is that persons absolute threshold (entrance/access) for that stimulus. Driving through a
increases (that is, the senses tend to become increasingly dulled). After an hour of driving
through billboards, it is doubtful that any one billboard will make an impression.
which is why they try to change their advertising campaigns regularly. They are
concerned that consumers will get used to their current print ads and TV commercials
that they will no longer see them; that is, the ads will no longer provide sufficient
Some marketers seek unusual media which to place their advertisements in an effort to
gain attention. Some advertise their products on bus shelters; others on parking meters
and shopping carts. Package designers try to determine consumers absolute thresholds to
make sure that their new product designs will be noticeable from competitors package
on retailers shelves.
The minimal difference that can be detected between two similar stimuli (here we will
consider price as stimuli) called the differential threshold or the J.N.D. (for just
noticeable difference). For example if the price of an apartment were increased by $200,
it would probably not be noticed (i.e. the increment would fall below the J.N.D.). If the
price increases $400 or more than the previous differential price would be noticed.
However consumers would notice a $1 increase in the price of rice/wheat very quickly,
Webers law has important applications in marketing. Manufacturers & marketers make
an effort to determine the relevant j.n.d. for their products for two very different reasons:
o So that negative changes (e.g. reduction in the product size) are not readily
apparent to consumers without being wastefully extravagant (they are above the
j.n.d.).
Marketers often want to update their existing package designs without losing -the ready
impact. In such cases they usually make a number of small changes, each carefully
designed to fall below the j.n.d. so that consumers will recognize minimal difference.
Pepsi redesigned its packaging in 1997 to update its look. Its new cola cans are bright
royal blue, with the word Pepsi in white lettering rising vertically up the side of the can.
In order to provide continuity in perceived look, the company initially introduced the new
packaging (and ads) in a lighter blue, which it gradually strengthen, making it globe logo
more famous. Coca-cola also redesigned its signature red cans and labels in order to keep
the brand looking fresh and new. At the same time, it was concerned that consumer
loyalists, who had rebelled at the introduction of the new coke in 1885- not erroneously
SUBLIMINAL PERCEPTION
Attention paid to a message without conscious awareness of the message. Although this
has never been proven to exist, the theory is that the recipient of a subliminal message
cannot erect mental barriers against the message and is thus more susceptible to the
message's influence.
3. Dynamics of Perception
Perception is the result of two different kinds of inputs that interact to form the personal pictures,
the perceptions that each individual experiences. One type of input is physical stimuli from the
outside environment; the other type of input provided by individuals themselves in the form of
certain tendency (expectations, motives and learning) based on previous experiences. These two
very different kinds of inputs produce for each of us a very private, very personal picture of the
world. Because each person is a unique individual and their perceptions are also unique. This
explains why no two people see the world in precisely the same way.
Individuals are very selective as to which stimuli they recognize; they unintentionally organize
the stimuli they do recognize according to widely held psychological principals and they interpret
such stimuli subjectively in accordance with their needs, expectations, and experiences.
Three aspects of perception are (a) the selection, (b) organization, and (c) interpretation of
stimuli.
A) Perceptual Selection
For example: a woman in a super market (Like Agora), she may be showing to over 25,000
products of different color, sizes, and shapes; to perhaps 100 people (looking, working, searching,
talking); to smells (from fruit, meat); to sounds within the store (cash registers ringing, shopping
carts rolling); and to sounds from outside the store (planes passing, car honking). Yet she
manages on regular basis to visit her local super market, select the items she needs, pay for them
and leaves, all within a relatively brief period of time, without losing her judgment or personal
orientation to the world around her. This is because she exercises selectively in perception.
Which stimuli get selected depends on two major factors in addition to the nature of the stimulus
itself; consumers previous experience as it affects their expectations (what they are prepared, or
set, to see) and their motives at the time (their needs, desires, interests and so on).
Nature of the stimulus: In an effort to achieve contrast, advertisers are also using splashes
of color in black and white print ads to highlight the advertised product. With respect to
packaging, smart marketers usually try to differentiate their packages to ensure rapid
consumer perception. Since the average package on the super market shelf has about
aspect of the package- the name, the color, the label and copy provide sufficient
Expectations: People usually see what they expect to see is usually based on familiarity,
tend to perceive products and product attributes according to their own expectations.
Motives: People tend to perceive the things they need or want; the stronger the need or
want; the stronger the need the greater the tendency to ignore unrelated stimuli in the
notice and read carefully ads for computer laptops than her neighbor, who uses a desktop
computer.
The marketer can segment the market on the basis of those needs and vary the product advertising
so that consumers in each segment will perceive the product as meeting their own special needs,
Selective Exposure: Consumers actively seek out messages that they find pleasant or with
which they are sympathetic, and they actively avoid painful or threatening ones.
Selective Attention: People vary in terms of the kinds of information in which they are
interested and the form of message and type of medium they prefer. Some people are
more interested in price, some in appearance, and some in social acceptability, some
Perceptual Defense: Consumers unintentionally screen out stimuli that they find
Perceptual blocking: Consumers protect themselves from being attacked with stimuli by
simply turning out- blocking such stimuli from conscious awareness. The perceptual
B) Perceptual Organization
People tend to organize the numerous stimuli from the environment into groups and perceive
them as unified wholes. Three of the most basic principals of perceptual organization are
discussed below:
Figure and Ground: Advertisers have to plan their advertisements carefully to make sure
that the stimulus they want noted is seen as figure and not as a ground. The musical
background must not overwhelm the jingle; print advertisers often line their products
against a White or Black background to make sure that the features they want noted are
clearly perceived. Marketers sometimes run advertisements that confuse the consumer
Grouping: For example, when AT&T introduced the idea of all digit telephone numbers,
consumers objected actively on the grounds that they would not be able to recall or repeat
into two chunks or three, with the area code, the anticipated problems never occurred.
Closure: A classic study found that incomplete tasks are better remembered that complete
tasks. A state of tension is created that manifests itself in improved memory for the
The need for closure has some interesting implications for marketers. Advertisers have
discovered that they can achieve excellent results by using the soundtrack of a frequently shown
C) Perceptual Interprtation
When stimuli are highly confusing, an individual will usually interpret them in such a way that
they serve to fulfill personal needs, wishes, and interests and so on. How close a persons
interpretations are to reality, then, depends on the clarity of the stimulus, the past experiences of
the perceiver, and his or her motives and interests at the time of perception.
Distorting Influences
There are a number of influences that tend to Distort (misrepresent) their perceptions; some of
Physical appearances: Studies on physical appearance have found that attractive models
are more influential and have a more positive influence on consumer attitudes and
behavior than average looking models; attractive men are perceived as more successful
events will be like, and they are important determinants of how such stimuli are
subsequently perceived.
Irrelevant cues: For example, many high priced automobiles are purchased because of
their color, style or luxury options, rather than on the basis of mechanical or technical
superiority.
First impressions: First impressions are often lasting in introducing any new product.
Information about the products advantages, even if true will often be negated by the
Jumping conclusions: For example the customer may hear just the beginning of a
commercial message and draw conclusions regarding the product or service being
advertised.
Halo effect: Using this broader definition marketers take advantage of the halo effect
when they extend a brand name associated with one line of products to another.
Products and brands have symbolic value for individual who evaluate them on the basis of their
consistency with their personal pictures of themselves. Such enduring perceptions or images are
Perceptual Mapping
The technique of perceptual mapping helps marketers to determine just how their products or
characteristics. It enables them to see gaps in the positioning of all brands in the product or
service class and to identify areas in which consumer needs are not being adequately let. For
example if a magazine publisher wants to introduce a new magazine to generation Xers, he may
use perceptual mapping to uncover a niche of consumers with a special set of interests that are not
being adequate or equally addressed by other magazines targeted to the same demographic
segment. This insight allows him to position the new magazine as specifically focus on these
interests.
Positioning of Services
Many service marketers have developed strategies to provide consumers with visual images and
tangible reminders of their service offerings. A number of image consultants have tried to
persuade united parcel service to change the color of its delivery trucks from dark brown to a
more cheerful color, but management has resisted because of the ready identification the brown
Perceived Price
There is some evidence that consumers do pay attention to the prices paid by other consumers.
No one is happy knowing he or she paid twice as much for an airline ticket or a theatre ticket as
the person in the next seat. Strategies that reduce perceived price unfairness ultimately enhance
A reference price is any price that a consumer uses as basis for comparison in judging another
price. Reference prices can be external or internal. An advertiser generally uses a higher external
reference price (sold elsewhere at....) in an ad, which a lower sales price is being offered to
persuade the consumer that the product advertised is a really good buy. Internal reference prices
are those prices (or price ranges) retrieved by the consumer from memory.
Tensile price claims (for example save 10 to 40%, save up to 60%, save 20% or more are
used to promote a range of price discounts for a product line, an entire department or sometimes
entire store. In contrast with tensile cues, objective price claims provide a single discount level
Perceived Quality
the flavor of ice cream or cake) to judge product quality. Consumers often cannot
differentiate among various cola beverages and base their preferences on such extrinsic
cues as pricing, packaging, advertising and even peer pressure. In the absence of actual
experience with a product, consumers often evaluate quality on the basis of cues that
are external to the product itself, such as price, brand image, retail store image, or even
Perceived quality of services: In evaluating a doctors services for example the consumer
note the quality of the office and examining room furnishing, the number (and source) of
framed degrees on the wall, the pleasantness of the receptionist and the professionalism
of the nurse. All contribute to the customers overall evaluation of service quality. During
peak demand hours the interactive quality of services often declines, because both the
customer and the service provider are hurried and under stress.
Researchers believe that service quality perceptions are a function of the gap between perceived
performance and a combination of expectations and desires. The SERVQUAL was designed to
measure the gap between consumers expectations of services and their perceptions of the actual
Service quality are divided into two groups: the outcome dimension (which focuses on the
reliable delivery of the core service) and the process dimension (which focuses on how the core
service is delivered. For example: while federal express provides the same core service as other
couriers (the outcome dimension), it provides a superior process dimension through its advance
tracking system.
The above conceptual model, that proposes that the customers overall satisfaction with the
transaction is based on an evaluation of service quality, product quality and price. A study of the
relationship between service quality, consumer satisfaction, and purchase intentions found that
perceptions of high service quality and high service satisfaction result in a very high level of
purchase intentions. Some consumer theorist believes that service quality is a determinant of
whether the consumer ultimately remains with the company or defects to a competitor.
An important question for marketers is whether consumers perceive a price quality association.
Generally when consumers do not have sufficient information about product quality, they use
price as an indication of quality. Since these consumers know little about the product, they are
less likely to be involved. Consumers with information about product characteristics are less
likely to make price-quality inferences. These consumers are more likely to be involved with the
product category. Price is more likely to be a reflection of quality if consumers have confidence
in the source of the price information. Price is also more likely to be a surrogate for quality when
consumers believe that quality and price difference exists between product alternatives. Such
variations allow for price-quality inferences. Consumers are unlikely to attribute higher quality to
products that are standardized or that differ by a few rupees. Price range permits quality
inferences. In support of these views overrule, found that price-quality association are more likely
for product lines than they are for single brands because product lines are more likely to have a
wide range in prices. On the basis, if the consumer shopping for 21-inch color TV set believes
there are significant price and quality differences among brands and has little knowledge about
The type of product the consumer wishes to buy influences his or her selection of a retail outlet.
A consumer wishing to buy an elegant dress for a special occasion may go to a store with an
elegant, high fashion image, such as Kelvin cline. Thus when a low priced store carries a brand
with a high priced image, the image of the store will improve while the image of the brand will be
negatively affected.
Manufacturers image
Manufacturers who enjoy a favorable image generally find that their new products are accepted
more radically than the manufacturers who have a less favorable or even a neutral image.
Researchers have found that consumers generally have favorable perceptions of pioneer brands
(the first in a product category) even after follower brands become available.
Perceived Risk
Perceived risk is defined as the uncertainty that consumers face when they cannot foresee the
Functional risk: is the risk that the product will not perform as expected.
Physical risk: is the risk to self and others that the products may pose.
Financial risk: is the risk that the product will not be worth its cost.
Social risk: is the risk that a poor product choice may result in social embarrassment.
Psychological risk: is the risk that a poor product choice will bruise the consumers ego.
Time risk: is the risk that the time spent in product search may be wasted if the product
When consumers see potential risk in purchase, they may be about the outcome of the division or
they may commend about the consequences of the division. Thus the two components of
perceived risk are uncertainty about the outcome of the decision and concern about the
consequences of the division. Several factors are likely to increases the risk consumers see in
For example, perceived risk in purchasing a laptop is high because most of the listed will be met.
As the product category is relatively new for many consumers, they have little experience with
alternatives. Moreover the product is technology complex, making evaluation more difficult. As a
result, consumers confidence in selecting brand over another is low. Furthermore, substantial
variations among brands and incompatible systems heighten risk. A high price will also
By acquiring additional information that will allow consumers to better assess risk.
failure.
Reducing the level of expectations before making the purchase. For example, a consumer
who decides that cars are a necessary evil and produce mechanical failures and repair
bills. This purchase is going to be terribly disappointed if his or her car does not perform
___________________________________________________________________________
5. Review questions
Discuss the differences between the absolute threshold and the differential threshold
How can the marketer use the Perceptual organization techniques effectively in a print
advertisement?
6. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
___________________________________________________________________________
UNIT 2: LESSON 6
ATTITUDE
1. Introduction
3. Properties of Attitude
4. Sources of Attitude
5. Components of Attitude
1. Introduction
Given three TV brands- Sony, Akai, Videocon; what do you think of all of them and why? What
is the first word that comes to your mind when I say- Mcdonalds, Lakme, Nokia, John players?
What do you think of Batas Rs. 99.99 pricing? Your response to all the above questions is the
This Something is a very broad term and includes product, brand, service; Advertisement etc.
research into studying the Attitude towards something is called as Attitude research. Various
taste tests, test studies, surveys are all part of this Attitude research. It is central to Consumer
Behavior. This is done to understand what consumers want and to increase consumer satisfaction
by delivering the same efficiently. It is to understand the pulse of the market. Attitudes shows
unfavorable manner with respect to a given stimulus. Schiffman and Kanuk (1996).
we have learnt certain things about the Attitude Object, which is coming out as
a response towards it. Attitudes are learnt from- direct experience, information
acquired from others and from exposure to mass media. Example- we have
stimulus.
o Stimulus- an object towards which the Attitude is measured. In all the above
Attitude objects (AO) it refers to the concept against which the Attitude is seen, tested
and analyzed. It can be anything ranging product, brand, service, retailer, events,
personalities, 4Ps, and concepts (reality TV shows). So, attitude is object specific.
Then AIWA, AKAI, VIDEOCON, SONY, HAIER, PHILIPS, SANSUI etc. would be
the Attitude object. But, if we are interested in studying attitudes regarding Sony TV.
Beliefs- it is the psychological association between a product, brand, outlet, action etc.
and an attribute or feature (and associated belief) of such. Beliefs are cognitive (based
features or attributes (and associated benefits) with the product, brand, outlet or action;
the stronger the consumers belief. Therefore, a belief is a descriptive thought that a
person holds about something. This belief can be favorable or unfavorable. Attitudes
are made up of the beliefs that a person accumulates over his lifetime. But, only few of
the beliefs actually work to influence attitudes. Beliefs which work are called Salient
beliefs. Now we can say- Attitude is a persons salient belief about whether the
Belief strength- beliefs are rated for the probability that engaging in the behavior will
produce the believed outcome. Evaluation is the perception of whether this outcome is
positive or negative. It is done using scales such as Likert scale. Attitude is a function
3. Properties of Attitude
It is a psychological process- Attitudes are not visible. They are reflected by actions,
a. Asking questions
b. Surveys
c. Hidden cameras
e. Consistency of purchases
Attitude is based on perception one carries towards the stimulus because of experience,
information, publicity, others and peer pressure. Two persons may have different
Attitude is not same as Behavior. At the most we can infer from attitude, the likely
the Golden Watch collection is favorable, but I bought a Fastrack designer watch.
attitude is that eating healthy food is important. The perception would be that vegetables
purchases as adults.
develop an Attitude. The marketers role is to get the consumers to try a product and
Influence of family and friends- we carry over to adulthood many of the attitudes we
developed as children.
Direct marketing and mass media- many solicitations are highly personalized and have
the capacity to create favorable/unfavorable attitude towards their product. Attitudes have
An experience leads to learning. This learning helps in building beliefs about it. This
5. Components of Attitude
We as individuals generally have attitudes that focus on objects, people or institutions. Attitudes
are also attached to mental categories. Mental orientations towards concepts are generally
Cognitive- cognitions are beliefs, theories, expectancies, cause and effect beliefs and
perceptions relative to the focal object. It is concerned with the thinking part.
Affective- it reflects our feelings such as anger, fear, happiness etc. with respect to an
Behavioral intentions- these are the goals, aspirations and our expected response towards
an Attitude Object.
attitude, we are referring to this component. Most often, Evaluations are stored in
Attitude and Behavior are said to be consistent if they move in same direction. It refers to the
extent to which attitude leads to purchase. This is to say that, if there is a positive attitude towards
an object and one purchases it; it is said that Attitude and behavior are consistent. Example-
Statement 1- Taj Mahal is a good tea and it is costly. (Attitude). I do not buy it
(Behavior). In this case Attitude and Behavior are consistent and go together.
Statement 2- Taj Mahal is a good tea and it is costly. (Attitude). It is offered at a discount
and I buy it. (Behavior). In this case, Attitude and Behavior are not consistent.
Situational factors- it includes time factor, message repetition and social influence
Situations influence attitudes- how attitude affects behavior depends on the situation in which the
behavior occurs. A specific situation may cause consumers to behave in ways that are
inconsistent with their attitudes. For a marketer it is important to consider the situation in which
Example- a lady buys different brands of cosmetics each time she buys because they are at EDLP
(Every Day Low Pricing). This brand switching behavior may seem to reflect a negative attitude
towards different brands that she tries. But, in reality this behavior is influenced by the situation
activities.
Cannon Color Printers Old PC Printer ceases Now that they have gone down in price so much,
Taj Resorts Exhausted, time or a I worked hard; I earned a couple of days away to
Maxima Watches Watch fell into water There is nothing to worry since it is an economical
Monaco Biscuits Party going on and I need to serve an instant substitute for snacks.
arrived.
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7. Models of Attitude
The objective of developing Attitude Models is to understand the relationship between Attitude
and Behavior. Psychologists try to develop models that capture underlying dimensions of
Attitude. All the models present different perspectives on the number of component parts of an
______________________________________________________________________________
AFFECTIVE
CONATION
cognitive decision maker rank order the preferred product or service on the basis of some
chosen criteria and assess each candidates attributes against the criteria set. Utility
function representing the weighted product of attributes and criteria would be used to
develop final ranking and choice. The knowledge and perception required to develop an
7. Affective- it represents the Emotions component which is based on feelings about the
Attitude object. It is generally a reaction to the cognitive aspect. Our emotional state may
amplify positive or negative experiences, which then have an affect on our attitude. It
consists of both our knowledge of stimulus and our evaluations of them. Emotions or
direct or global assessment of Attitude object, which can be positive, negative or mixed
reactions. Buying of any product/ service is accomplished on the basis of how each
product/service makes the decision maker feel. The product with the greatest positive
affective response would be ranked first. While using the product, the consumers can
experience certain affective states such as happiness, joy, dissonance etc. such
8. Conation- it represents the actual buying behavior based on the probability of purchasing.
It helps to assess the buying intentions. It is the likelihood/ tendency of certain behavior
with respect to an Attitude object. It is the predictor of actual buying behavior based on
This model is more clearly tied to high involvement brand, outlet, product, situations than low
involvement ones. Marketers use this model to create/ change attitudes. They provide information
for the consumers Cognition level; emotionally toned messages to cater to their Affective states
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It consists of Attitude models that examine the composition of consumer attitudes in terms of
selected product attributes or beliefs. It portrays consumers attitude with respect to an Attitude
Attributes
Beliefs
Importance weights
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strongly he or she believes that action will lead to a specific outcome (favorable or unfavorable).
It is suitable for measuring attitude towards product/ service/ brands. Consumers attitude towards
beliefs or attributes. Consumers generally have favorable attitudes towards those brands that they
believe have an adequate level of attributes that they evaluate as positive and unfavorable attitude
towards those brands they feel do not have an adequate level of desired attributes or have many
Salient beliefs
Evaluation
Assumptions of this model are the consumers ability to specify all relevant choice attributes and
n
A = i=1Biai
Where:
a = Evaluative dimension associated with attribute i i.e. weight age applied by consumer to
B = Strength of the belief that the attitude object contains attribute i. It shows whether the
The strength or weakness of consumers beliefs about the brand and its attributes
Consumers evaluations of or feelings towards those attributes
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A model that proposes that a consumers attitude toward a specific behavior is a function of how
strongly he or she believes that the action will lead to a specific outcome (either favorable or
unfavorable). It is not uncommon for consumers to have a positive attitude towards an object,
Example: Attitude towards object-I like BMW. Attitude towards action-but I m not ready to
buy one.
Focus is on actual behavior i.e. individuals attitude towards behaving or acting with respect to an
object, rather than the attitude towards object itself. Model predicts the intention to behave and
Example- my attitude towards purchasing a Fastrack watch (i.e. Attitude towards behavior/
action) reveals more about the potential of purchasing/ actual behavior of buying or not, then my
attitude towards Fastrack watch (i.e. attitude towards an object) because I might have a positive
attitude towards the watch, but a negative attitude towards purchasing it.
n
A(behavior) = i=1Biai
Where:
i = outcome
a = Evaluative dimension associated with outcome i i.e. weightage applied by consumer to
oucome i
B = Strength of the belief that an action will lead to specific outcome.
A (Beh) = Separately assessed overall measure of affect for or against carrying out a specific
action or behavior
= There are n salient outcomes over which Bi and ai are summated
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A comprehensive theory of the integration of attitude components into a structure that is designed
to lead to both better explanations and predictions of behavior. It is based on social psychology.
Origin:
1872: Charles Darwin Attitude as physical expression of emotion
1930: Emotions or thought with behavioral component
1935: Gordan Allport, Attitude behavior concept is multi-dimensional
1980: Ajzen and Fishbein, Persons behavior is determined by his intention to perform and this
intention is a function of his attitude towards the behavior and by the opinion of his social
environment. He proposed that a persons behavior is determined by his intention to perform the
behavior and this intention is in turn a function of his attitude towards the behavior and subjective
norm.
n
A(behavior) = i=1Biai
Where:
i = outcome
a = Evaluative dimension associated with outcome i i.e. weightage applied by consumer
to oucome i
B = Strength of the belief that an action will lead to specific outcome.
A (Beh) = Separately assessed overall measure of affect for or against carrying out a
specific action or behavior
= There are n salient outcomes over which Bi and ai are summated
n
SN = J=1NBJMCJ
SN
Where:
SN= Subjective Norm
NB= Normative Beliefs
MC= Motivation to Comply
J= Significant others 1-10
Intention
Behavior
Source: Adapted from Ajzen Martin Fishbein
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Model which is based on intentions to buy i.e. the conative component is an Attitude theory
designed to account for the many cases where the action or outcome is not certain but instead
reflects the consumers attempt to consume (or purchase). There are often in such cases,
occurring. The focus is on trying rather than the outcome (purchase or consumption).
Example- I am calories conscious so, this personal impediment comes in the way of consuming
soft drink, as I try to consume. A diet coke overcomes my impediment and bridges the gap
between trying to consume and Actual consumption. It highlights the constraining factors that
prohibit the consumer from converting Attitudes into actual buying pattern. It explores
Applications-
Personal Impediments
I want to join gym but it is too time
consuming and costly.
I want to try to lose fifteen kgs by
next summer.
Im going to try to get tickets for a
PVR show for your birthday.
Im going to attempt to give up
smoking by my anniversary.
Tonight, Im not going to have
dessert at the restaurant.
Environmental Impediments
The first ten people to call in will
receive a free T-shirt.
Hurry 50% off till stocks last.
You can avail discount till
tomorrow.
I am sorry. We cannot serve you. We
are closing the restaurant because of a
problem with the oven.
Closed on Gazetted holidays.
attitude towards success and expectations of success, attitude towards failure and expectation of
failure and the attitude towards the process itself. All this leads to attitude toward trying which
along with Social norms determines an Intention to try. This Intention to try results in
trying. Also, as can be seen frequency of past trying and recency of past trying affects the act
of Trying.
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A model that proposes that a consumer forms various feelings (affects) and judgments
(cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumers
attitude toward the ad and attitude toward the brand. The gist of the model is:
Normally, if you like an ad, you are more likely to purchase the advertised brand.
For a new product/brand, an ad has a stronger impact on brand attitude and purchase
intention.
Model helps to understand the impact of advertising or some other promotional vehicle
This Model measures the impact of Advertisement or some other promotional vehicle on
consumer attitude.
Exposure to an
Ad
Consumer starts reacting to the advertisement by feeling (affect) and applying mind
(cognition).
Advertising can be for brand building or directional. Also assumed is that there is limited time
and mental resources which makes it difficult for audience to dedicate sufficient attention to most
channel within which the advertisement is carried. Attitude towards an advertisement depends on
advertising value and perceived level of entertainment. This in turn depends on various factors
that consumers use in evaluation. All this determines an attitude towards the advertisement. For
this Model it is assumed that audience members are active gratification seekers and not just
passive recipients of media. Their media use is considered to be a conscious effort to fulfill their
advertisement. Motive affects the perceived values on six factors. These factors which expect to
affect advertisement attitude within both the traditional and internet environment are:
ENTERTAINMENT
MOTIVE INFORMATIVENESS ATTITUDE
IRRITATION
CREDIBILITY
INTERACTIVITY
DEMOGRAPHIC
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How can the marketer use the Attitude towards Ad Model to the advantage of the firm?
______________________________________________________________________________
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
___________________________________________________________________________
UNIT 2: LESSON 7
______________________________________________________________________________
2. Attitude formation
3. Attitude change
5. Review questions
6. Further readings
______________________________________________________________________________
One of the appeals of attitudes is that they can be measured and that as it can be measured we can
assess how it might affect behavior and how things like time and social pressure change them.
Thurstone scale: This scale also known as Thurstone and Clave scale is one of the best
techniques of measuring attitude with the help of equal appearing intervals. It is a technique in
which a large number of statements are collected regarding a subject. The statements should
range from one extreme of favorable responses to the other extreme of highly unfavorable
response. There is no definite number of statements to be collected but they should be sufficiently
large. Care should be taken that statements are brief, they truly indicate the attitude of respondent
leading to acceptance or rejection of the statement, and should not be double meaning statements.
All techniques used today for attitude measurement are based on Thurstone attitudinal scales.
Summated Rating Scale: According to this technique, researcher collects a large number of
statements and eliminates those, which are ambiguous, irrelevant or deficient. The remaining
statements are administered to one or more respondents for their reaction using a five point rating
system i.e. strongly approve, approve undecided, disapprove and strongly disapprove. These
categories are assigned value 5,4,3,2 and 1 respectively. In case of negatively worded statements,
this scoring is reversed. The correlation between statement scores and total scores is ascertained.
Statements with a high correlation with total score are selected for final scale.
Scalogram Analysis: Guttman proposed this attitudinal scale. This method is based on the
assumption that if an individual replies positively to a difficult question then he will also respond
positively to all questions, which are simpler than the earlier question.
Semantic Differential: This technique involves three dominant factors i.e. evaluation, potency
and activity factor. It is a bipolar scale conforming to the basic concept of motivation, attraction
or repulsion from an object. Here respondents are asked to give their opinion on a seven-point
scale. The average of all the responses helps to determine the attitude of respondents towards a
particular object.
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2. Attitude formation
Introduction- The study of attitude formation and change helps explaining and predicting
behavior to some extent. Learning theories are applied to the learning of attitudes because
learned is one of the key words in the definition. One can also see the impact of
attitudes and modified attitudes emerge. A marketer must be aware of attitude formation,
how attitudes translate into behavior (and possibly the reverse), and how marketing
strategies can affect attitude formation and behavior. Attitudes are learned through direct
and indirect knowledge and experience. If attitudes were not learned but rather innate or
inborn, they could not be changed. A basic model of attitude formation is:
and by observing their actions, especially our families in their daily consumption
displays, are constantly providing consumers with information about their own
o Form Beliefs- all the information helps in forming a belief base for the consumer,
called Cognitions.
o Identify salient beliefs- Only a small number of beliefs are significant enough to
as Salient beliefs. These change over time and are person specific.
and then bundled together to form the Attitude. It involves some weighting.
Even though you may be evaluating five salient beliefs, perhaps you consider one
of them to be more important, and therefore, your evaluation of that salient belief
o Set placement- Overall attitude determines set placement within the awareness
set. Products we have a favorable attitude towards form the Evoked set, from
which purchase decisions are made. Products we neither like nor dislike that
is we are ambivalent towards but are still aware of them fall into the Inert
set. Products towards which we have a negative attitude fall into the Inept set.
Negative attitudes are usually, but not always, based on actual product usage.
Products in the inept set are not considered for purchase. Not only do we not
consider the product for purchase, but we may actively discourage others from
o Post purchase evaluation- Once products are purchased and used, post-purchase
o Marketers use the information gained from psychologists and educators, and
apply the learning theories to the learning of attitudes. A consumer moves from
continuous. The same learning theories that are applied to the learning of an
attitude can be applied to attitude change. The three learning theories that can be
response with their target market. They hope for a positive attitude
products or a celebrity associated with the product. In this case, the brand
new product.
attitude. Perhaps it was the only product available; they were enticed by
liked the product their attitude will probably move from neutral to
positive.
information a consumer has about a product, the more likely they are to
Remember though that consumers can, and do, suffer from information
salient beliefs. The three most important salient beliefs tend to dominate
in formation of attitude.
information that consumers use in the formation of attitudes, they can adjust their
information may be used in formation of the consumers attitude. Consumers get the
o Direct and past experience- Attitudes are learned through knowledge and
o Personal influence- as we come in contact with others, our family and friends, we
programs to target small consumer niches with products and services of their
interest.
Persons with higher need are likely to form positive attitudes in response to
______________________________________________________________________________
3. Attitude change
Introduction-just like attitude formation, attitude changes are also learned. They are
factors. All marketers are concerned with maintaining positive attitudes in their
change attitudes. Marketers have found that weakly held attitudes are easier to
change than strongly held attitudes. Consumers tend to develop strongly held
attitudes in areas they considered to be of great personal importance, that is, of high
involvement. Strongly held attitudes can be either positive or negative, with the
product falling in the evoked or the inept set. In areas of limited or questionable
attitudes that are susceptible to change. These products would fall in the inert set.
Attitude change strategies- the following are the attitude change strategies:
the theory that attitudes serve four basic functions: utilitarian, ego-defensive,
The utilitarian function- certain brand attitudes are the result of the
utility from that brand. If the product has been useful and good in the
The ego defensive function- people want to protect their self images
o Associating the product with a special group, event or cause- Attitudes can
groups, events or causes. Concern for the environment has been one cause
used recently.
like conflict. If they can be shown that their attitude towards a product is in
conflict with another attitude, they may be induced to change one of the
attitudes.
rating.
technological innovation.
beliefs about both products. But, this strategy must be used with caution.
product. In this case, motivation levels are high and the consumer is
willing to invest the time and effort to gather and evaluate the
attractiveness.
All of these strategies take the traditional view that attitude precedes behavior and use the
When faced with negative market research numbers, stagnant or slipping market share, or
attitudes. Marketers must realize that attitudes change not only in response to their
themselves or the competition; the addition of new consumer experiences, either direct or
indirect; the marketing efforts of the competition; and how the product performs after
purchase
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Traditionally the models of attitude formation and attitude change strategies view that attitude
precedes behavior: we develop attitudes towards the products from a variety of sources (past and
direct experience, personal influence and exposure to mass media), and that this attitude
determines behavior or purchase. In this section, we review theories which suggest that behavior
can precede attitude formation and actually cause the formation of new attitudes or change in
existing attitudes. Theories that suggest that sometimes behavior precedes attitude are:
experience discomfort, called dissonance, when they are confronted with new
information about a belief or attitude that is in conflict with the original information.
This often happens after a purchase, when it is called post-purchase dissonance. The
product was purchased with a set of expectations (beliefs). Following the actual use of
the product, the consumer may find that the initial set of expectations was not met, or the
consumer may question whether they made the right choice given the features and
benefits of the products not chosen. In either case, the consumer is faced with new
information that is in conflict with the original beliefs. In an effort to reduce the
discomfort or dissonance, the original attitude may be changed. If that happens, then
Attribution theory - Attribution theory suggests that attitudes are formed and changed
Consumers make inferences about their own behavior and that of others in an attempt to
determine why they behaved the way they did. One of the meanings of the word
attribute is caused by. Attribution theory suggests that attitudes are caused by
behavior. It includes:
o Self perception theory- suggests that consumers develop attitudes as they review
and make judgments about their own behavior. I always choose chocolate for
dessert, so I must really like chocolate. There are three such types of
ability, your skill, or your effort. That is, whether the target market
attributes success to internal factors (the consumer, their skill,
for success, and to credit failure to others or to outside events. For this
Foot in the door technique- is based on the premise that individuals look
conclude that they are the kind of person who says Yes to such
o Attribution towards others- suggests that we also review and make judgments
about the behavior of others, called attributions towards others. This has
Specifically, they want to find out why a product meets or do not meet their
they have made about products or people. They might use the criteria of
______________________________________________________________________________
5. Review questions
______________________________________________________________________________
6. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
______________________________________________________________________________
UNIT 2: LESSON 8
1. Introduction
2. Components of Learning
5. Review questions
6. Further readings
1. Introduction
deliberately or when we are not trying. In the context of marketing, learning is a result of
information received through advertising or other publicity or through some reference group or
other. In order to have an effect on motives or attitudes, marketing effort should associate the
product with positive drives and reinforcing messages. Consumers learn from past experience,
and their future behavior is conditioned by such learning. In fact, learning can be defined as a
purchasing and consuming products, they learn not only what brands they like, but also features
they like most in particular brands. They then adjust their future behavior based on past
experience. For example after wearing the brand repeatedly, a consumer might determine that a
pair of Reebok running shoes is the most comfortable and provides the best support. Continued
satisfaction with the brand leads the consumer to buy Reeboks every time he needs new athletic
shoes. Thus continued satisfaction reinforces past experience and increases the probability that
2. Components of Learning
associated with a particular response, we conclude that learning has occurred. To understand the
concept of learning, we need to consider its various components. These components are as under:
Drive: Drive is said to be strong stimuli that forces action. The drive arouses in an
individual an urge to respond to the stimuli and thus forms the basis of motivation. For
example, seeing a product like a microwave oven at a friends place and watching
advertisements may create a drive to know more about the oven. This in turn motivates
the individual to visit a retailer and have more information about the oven and thus leads
to learning.
Cues: A cue is any object existing in the environment, as perceived by the individual.
Cues give direction to motives. Cues increase the possibility of getting specific response.
For example, seeing an advertisement of a packaged tour of Europe may act as a cue for
an executive to enjoy a vacation with his family and reduce the tension. Cues should be
Such response may be in the physical form or may be in terms of phenomena such as
attitudes, perceptions etc. Response does not merely depend on drive, motive or cue. It
also depends on past experience of consumers and their association of the cue with
Reinforcement: It is a very basic condition of learning. Without it, we cannot observe any
which increase the likelihood of specific response occurring in the future as a result of
Retention: The stability of learned behavior maintained by the individual over a period of
tendency for the conditioned response to continue for a long period of time. For example,
a consumer who is absolutely delighted by the use of a product will continue to have a
The learning theory offers tremendous challenge to a marketer- that of guiding and sometimes
even directing human behavior. This is done by developing stimuli and cues, which will bring to
force the latent need in the customer. Attractive advertising, shelf displays, packaging, how to use
instructions, store layout, availability and sales persons are all examples of cues that marketer
develops to drive customers to the product or service. An excellent customer care program of the
marketer can help a customer have positive feelings about his or her experience. The marketer
may also develop cues to differentiate his or her product from that of the competitor.
based on the premise that observable responses to specific external stimuli signal that learning has
taken place. When a person acts (responds) in a predictable way to a known stimulus, he or she is
said to have learned. Two behavioral theories with great importance to marketing are:
Early classical conditioning theorists observed all organisms as relatively passive (reflexive/
reactive) entities that could be taught certain behaviors through repetition (or "conditioning").
The meaning of conditioning is a kind of knee jerk (or automatic) response to a situation
builds up through repeated exposure. If you get a headache every time you think of visiting your
aunt Jimmy, your reaction may be conditioned from years of boring visits with her.
According to Pavlovian theory, conditioned learning results when a stimulus that is paired with
another stimulus that obtains a known response serve to produce the same response when used
alone.
Ivan Pavlov demonstrated what he meant by conditioned learning in his studies with dogs. The
dogs were hungry and highly motivated to eat. In his experiment pavlov sounded a bell and then
immediately applied a meat paste to the dogs' toughs, which cause them to salivate (mouth
watered). Learning (conditioning) occurred when, after a significant amount of repetitions of the
bell sound followed almost immediately by the food, the bell sound alone caused the dogs to
salivate. The dogs associated the bell sound (the conditioned stimulus) with the meat paste (the
unconditioned stimulus) and, after a number of pairings, gave the same unconditioned response
mouth to water. If you usually listen to the 6 o'clock news while waiting for dinner to be served,
you would tend to associate the 6 o'clock news with dinner, so that eventually the sounds of 6
o'clock news alone might cause your mouth to water, even if dinner was not being prepared and
Classical conditioning rather than being a reflexive action is seen as cognitive associative
learning; not the gaining of new reflexes (response), but the involvement of new knowledge about
the world. Studies have found that conditioning encourages attention to the advertised brand in
subsequent promotions. Some companies are building -into their products slight reminders that it
is time to replace. Soft drink cans and bottles are stamped with expiration (ending) dates; Gillette
high tech razors include a color strip that fades over time, indicating replacement is due-, Oral B
tooth brushes incorporate an "early warning system" that indicates (when the brush bristles fade)
that it's time to replace. These companies are using stimuli in the products themselves to trigger
replacement behavior.
Following three basic concepts are derived from Classical Conditioning Theory:
Repetition: Although the principle of repetition is well established among advertisers, not
everyone agrees on how much repetition is enough. Some marketing scholars believe that
just 3 exposures to an advertisement are needed: one to make consumers aware of the
product, and a third to remind them of its benefits. Others think it may take 11-12
repetitions to increase the likelihood that consumers will actually receive the three
exposures basic to the so-called three-hit theory. The effectiveness of repetition is
somewhat dependent upon the amount of competitive advertising to which the consumer
is exposed. The higher the level of competitive ads, the greater the likelihood that
interference will occur and consumers will easily forget previous learning that resulted
from repetition.
Stimulus Generalization: That is making the same response to slightly different stimuli-
not much learning would take place. Stimulus generalization explains why imitative "me
too" products succeed in the market place; consumers confuse them with the original
product they have seen advertised. It also explains why manufacturers of private label
brands try to make their packaging closely resemble the national brand leaders. They are
hoping that consumers will confuse their packages with the leading brand and buy their
The principle of stimulus generalization is applied by marketers to product line, form and
category extensions. In extending its product line, the marketer adds related products to
an already established brand, knowing that the new product is more likely to be adopted
when it is connected with a known and trusted brand name. Researchers report that the
number of different products affiliated with a brand may actually strengthen the brand
name, as long as the company maintains a quality image across all brand extensions.
generalization. And results in the selection of a specific stimulus from among similar
the unique ways in which its product will satisfy the customers needs. It wants the
consumer to differentiate its product from among competitive products on the shelf.
Market leaders want the consumer to discriminate (differentiate) among similar stimuli.
behavior.
from that of competitors on the basis of an attribute that is relevant meaningful and
discrimination has occurred. One explanation is that leader is usually first in the market
and has had a longer period to teach consumers to relate the brand name with the
product.
Instrumental conditioning, the stimulus that results in the most satisfactory response is the one
that is learned. Instrumental learning theorists believe that learning occurs through a trial- and -
error process. In a marketing context, the consumer who tries several brands and styles of jeans
before finding a style that fits her figure (positive reinforcement) has engaged in instrumental
learning. Most likely, the brand that fits best is the one she will continue to buy.
influence of re-inforcers. Reinforcers are events that follow a response and increase the likelihood
that the response will be repeated, but they do not suggest the operation of a cognitive component
such as reward (or pleasure). Learning is influenced according to the schedules of reinforcement
in the operant paradigm. Skinner tested the instrumental (operant) theory by carefully controlling
According to Skinner, instrumental (operant) conditioning has two laws. The first is the law of
conditioning, which states that reinforcement strengthens the behavior that precedes it, which
makes it more likely that the behavior will be repeated. The second is the law of extinction, which
states that lack of reinforcement for a behavior, will make that behavior less likely to reoccur.
Reinforcement consists of two types of events, those that are positive, which means that when
they are presented (e.g., present tasty food) the probability of a behavior occurring is increased
(e.g., press a lever to get the tasty food), and those that are negative, which means that when they
are removed (e.g., stop a loud sound or painful shock) the probability of a behavior occurring is
increased (e.g., press a lever to stop a loud sound or painful shock). Punishment is defined as an
event that weakens the tendency to make a response. Punishment could involve presenting an
aversive stimulus (e.g., presenting a loud sound or painful shock), or it could involve removing
access to a positive stimulus (e.g., removing a tasty food when a lever is pressed).
Skinner also experimented with different reinforcement schedules, and he found that different
deliver a reinforcer every time the target behavior is exhibited. These schedules are effective in
establishing the target behavior, but the behavior disappears quickly if the contingency is not met.
Intermittent schedules of reinforcement deliver the reinforcer on a ratio schedule. For example, an
experimenter may decide to reinforce every fourth response that an animal makes, or a reinforcer
may be presented after a fixed or random time interval. The two types of intermittent schedules
that maintain a high rate of responding and are very resistant to extinction are variable ratio and
Strict adherence to the behaviorist tradition excluded analysis of mental or internal events.
However, Skinner acknowledged the role of thought. He maintained that thought was caused by
events in the environment, and therefore a theory of learning that was concerned with the
influence of the environment was appropriate. Like Pavlov and Thorndike, Skinner's work was
primarily conducted with nonhuman animals, but the principles of instrumental (operant)
conditioning can be applied to humans as well, and they are widely used in behavior therapy and
education.
There are four major techniques or methods used in operant conditioning. They result from
combining the two major purposes of operant conditioning (increasing or decreasing the
probability that a specific behavior will occur in the future), the types of stimuli used
(positive/pleasant or negative/aversive), and the action taken (adding or removing the stimulus).
Outcome of Conditioning
Increase Behavior Decrease Behavior
Positive Positive Response Cost
Reinforcement
Stimulus (add stimulus) (remove stimulus)
Negative Negative Punishment
Reinforcement
Stimulus (remove stimulus) (add stimulus)
Schedules of consequences
Stimuli are presented in the environment according to a schedule of which there are two basic
categories: continuous and intermittent. Continuous reinforcement simply means that the
behavior is followed by a consequence each time it occurs. Intermittent schedules are based either
on the passage of time (interval schedules) or the number of correct responses emitted (ratio
schedules). The consequence can be delivered based on the same amount of passage of time or
the same number of correct responses (fixed) or it could be based on a slightly different amount
of time or number of correct responses that vary around a particular number (variable). This
specific example of a fixed ratio schedule with only one response emitted before a consequence
occurs.]
Fixed interval -- the first correct response after a set amount of time has passed is
reinforced (i.e., a consequence is delivered). The time period required is always the same.
Notice that in the context of positive reinforcement, this schedule produces a scalloping
reinforcement.) Also notice the number of behaviors observed in a 30 minute time period.
Variable interval -- the first correct response after a set amount of time has passed is
reinforced. After the reinforcement, a new time period (shorter or longer) is set with the
Fixed ratio - a reinforce is given after a specified number of correct responses. This
schedule is best for learning a new behavior. Notice that behavior is relatively stable
between reinforcements, with a slight delay after a reinforcement is given. Also notice
the number of behaviors observed during the 30 minute time period is larger than that
reinforcement the number of correct responses necessary for reinforcement changes. This
schedule is best for maintaining behavior. Notice that the number of responses per time
In summary, the schedules of consequences are often called schedules of reinforcements because
there is only one schedule that is appropriate for administering response cost and punishment:
continuous or fixed ratio of one. In fact, certainty of the application of a consequence is the most
important aspect of using response cost and punishment. Learners must know, without a doubt,
schedule when one is attempting to reduce a behavior may actually lead to a strengthening of the
There are five basic processes in operant conditioning: positive and negative reinforcement
strengthens a behavior; the word positive has two cues associated with it. First, a positive
or pleasant stimulus is used in the process, and second, the reinforcer is added (i.e.,
strengthens a behavior; the word negative has two cues associated with it. First, a
negative or aversive stimulus is used in the process, and second, the reinforcer is
after the response the negative reinforcer is removed which increases the frequency of the
response. (Note: There are two types of negative reinforcement: escape and avoidance. In
general, the learner must first learn to escape before he or she learns to avoid.)
stimulus, then response cost has to weaken a behavior by subtracting a positive stimulus.
After the response the positive reinforcer is removed which weakens the frequency of the
response.
stimulus, than punishment has to weaken a behavior by adding a negative stimulus. After
a response a negative or aversive stimulus is added which weakens the frequency of the
response.
Our knowledge about operant conditioning has greatly influenced educational practices. Children
at all ages exhibit behavior. Teachers and parents are, by definition, behavior modifiers (if a child
is behaviorally the same at the end of the academic year, you will not have done your job as a
teacher; children are supposed to learn (i.e., produce relatively permanent change in behavior or
behavior potential) as a result of the experiences they have in the school / classroom setting.
Behavioral studies in classroom settings have established principles that help teachers organize
and arrange classroom experiences to facilitate both academic and social behavior. Instruction
itself has also been the focus of numerous studies, and has resulted in a variety of teaching
models for educators at all levels. Programmed instruction is only one such model. Programmed
instruction requires that learning be done in small steps, with the learner being an active
participant (rather than passive), and that immediate corrective feedback is provided at each step.
Observational or social learning is based primarily on the work of Albert Bandura. He and his
colleagues were able to demonstrate through a variety of experiments that the application of
consequences was not necessary for learning to take place. Rather learning could occur through
the simple processes of observing someone else's activity. This work provided the foundation for
The observational or social learning theory of Bandura emphasizes the importance of observing
and modeling the behaviors, attitudes, and emotional reactions of others. Bandura (1977) states:
"Learning would be exceedingly laborious, not to mention hazardous, if people had to rely solely
on the effects of their own actions to inform them what to do. Fortunately, most human behavior
is learned observationally through modeling: from observing others one forms an idea of how
new behaviors are performed, and on later occasions this coded information serves as a guide for
action. Social learning theory explains human behavior in terms of continuous reciprocal
underlying observational learning are: (1) Attention, including modeled events (distinctiveness,
affective valence, complexity, prevalence, functional value) and observer characteristics (sensory
capacities, arousal level, perceptual set, past reinforcement), (2) Retention, including symbolic
coding, cognitive organization, symbolic rehearsal, motor rehearsal), (3) Motor Reproduction,
Because it encompasses attention, memory and motivation, social learning theory spans both
cognitive and behavioral frameworks. Bandura's theory improves upon the strictly behavioral
interpretation of modeling provided by Miller & Dollard (1941). Banduras work is related to the
theories of Vygotsky and Lave which also emphasize the central role of social learning.
The highest level of observational learning is achieved by first organizing and rehearsing
the modeled behavior symbolically and then enacting it overtly. Coding modeled
behavior into words, labels or images results in better retention than simply observing.
Individuals are more likely to adopt a modeled behavior if it results in outcomes they
value.
Individuals are more likely to adopt a modeled behavior if the model is similar to the
observer and has admired status and the behavior has functional value.
Social learning theory has been applied extensively to the understanding of aggression (Bandura,
1973) and psychological disorders, particularly in the context of behavior modification (Bandura,
1969). It is also the theoretical foundation for the technique of behavior modeling which is widely
used in training programs. In recent years, Bandura has focused his work on the concept of self-
The most common (and pervasive) examples of social learning situations are television
commercials. Commercials suggest that drinking a certain beverage or using a particular hair
shampoo will make us popular and win the admiration of attractive people. Depending upon the
component processes involved (such as attention or motivation), we may model the behavior
5. Review questions
______________________________________________________________________________
6. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden Press,
Chicago, 1990
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 2: LESSON 9
_________________________________________
4. Review questions
5. Further readings
_________________________________________________
as a rejection of the behaviorist views. Psychologists believed that mental events, or cognitivism,
inquiry; however, inferences about unobservable mental processes can often be drawn
Learning involves the formation of mental associations that are not necessarily reflected
Knowledge is organized.
Learning is a process of relating new information to previously learned information.
New information is most easily acquired when people can associate it with things they
Cognitive development theories first identify the capabilities that represent the highest levels of
human thought. Then they describe the events and conditions necessary to attain these levels of
thinking. Schools may facilitate the process; however the implication is that higher levels of
human thinking cannot be taught directly (Gredler, 1997). Cognitive psychologists share with
behaviorists the belief that the study of learning should be objective and that learning theories
However, cognitivists differ from behaviorists in one critical respect. By observing the responses
that individuals make to different stimulus conditions, cognitivists believe that they can draw
inferences about the nature of the internal cognitive processes that produce those responses.
Cognitive theories of learning focus on the mind (the mind is a "black box" according to
behaviorist views), and attempt to model how information is received, assimilated, stored, and
recalled. The implication is that by understanding the mechanics of this process, we can develop
teaching methods more suited to fostering the desired learning outcome, which is a shared desire
with behaviorists.
Cognitivists argue that while things like the environment are important inputs to learning,
learning is more than simply the collection of inputs and the production of outputs. The mind has
the ability to synthesize, analyze, formulate, and extract received information and stimuli in order
Under cognitive learning theory, it is believed that learning occurs when a learner processes
information. The input, processing, storage, and retrieval of information are the processes that are
at the heart of learning. The instructor remains the manager of the information-input process; but
the learner is more active in planning and carrying out his/her own learning than in the
behaviorist environment. Instruction is not simply something that is done to a learner but rather
According to Gredler (1997), six of seven contemporary theories influential in learning are based
Metacognition
various cognitive theory applications. This "thinking about thinking" allows one to better manage
his own learning, and take an active, rather than passive role in the assimilation process. This
metacognition would include various techniques for enhancing memory such as the chunking or
repetitiveness of repeated rehearsal to hold some key fact in short term memory for immediate
usage.
Early behaviorists chose not to incorporate mental events into their learning theories, arguing that
such events were impossible to observe and measure and so could not be studied objectively.
However, during the 1950s and 1960s, many psychologists became increasingly dissatisfied with
such a "thoughtless" approach to human learning. As a result, major cognitive works began to
emerge. The work of the Gestalt psychologists, Edward Tolman, Jean Piaget, and verbal learning
researchers was laying a foundation for cognitive learning theories. During the 1960s, discontent
with the inadequacies of behaviorism became more widespread. The behaviorist perspective
could not easily explain why people attempt to organize and make sense of the information they
learn or why people often alter the form of information they learn. One example includes
remembering general meanings rather than verbatim information. Among learning psychologists
there emerged a growing realization that mental events or cognition could no longer be ignored.
By the 1970s, most learning theorists had joined the cognitive field of thought. In the 1980s three
cognitive theories gained prominence: Bandura's social-cognitive theory, Weiner's attribution
Tolman
Edward Tolman, developed the concept of cognitive learning in research where he found that
rats used in an experiment appeared to have a mental map of the maze he was using. When he
closed off a certain portion of the maze, the rats did not bother to try a certain path because they
"knew" that it led to the blocked path. Visually, the rats could not see that the path would result in
failure, yet they chose to take a longer route that they knew would be successful. Therefore,
Tolman thought of learning as developing from bits of knowledge and cognitions about the
environment and how the organism relates to it. This was in contrast to the theories of Thorndike
Bruner
Jerome S. Bruner called for a theory of instruction in 1960. Bruner who stressed the element of
social interaction as an integral part of information processing first espoused interact ional
cognitive development theories. Bruner developed the discovery theory of learning, which he
defined as obtaining knowledge for oneself by the use of one's own mind (Bruner, 1961). Bruner
contended that a true act of discovery is not a random event. It involves an expectation of finding
regularities and relationships in the environment. He endorsed problem solving with structured
searching strategies is an integral part of discovery learning. The roots of constructivism are
Weiner
Bernard Weiner's attribution theory is a theoretical framework for understanding what learner's
believe causes their achievement. The framework focuses on the ways that individuals arrive at
causal explanations. This is important because it has (1) implications for strategies to alter
misperceptions and (2) provides a framework for understanding different classroom goals.
Vygotsky
Lev S. Vygotsky is another prominent cognitivist, namely because of his sociohistorical theory
that stresses cultural processes determine the nature of learning. Vygotsky introduced the idea of
the Zone of Proximal Development (ZPD) in which the learner, teacher, and content interact
with a problem that needs resolution. Vygotsky (1978) maintained the child follows the adult's
example and gradually develops the ability to do certain tasks without help or assistance. He
called the difference between what a child can do with help and what he or she can do without
guidance the "zone of proximal development" (ZPD). In other words, ZPD is the discrepancy
between children's actual mental age and the level they reach in solving problems with assistance.
This ZPD concept also reinforces the importance of the principle of readiness. The readiness
principle reinforces the need for a learner to be at a point of readiness for learning certain
material. Another basic principle introduced by Vygotsky is the general law of genetic
development, which describes the social process of cognitive development. It states that every
complex mental function was first an interaction between people. Bruner also believes the
learner's participation in culture aides their psychological development. Much of Vygotsky's work
Piaget
Jean Piaget, a Swiss developmentalist, began a research program during the 1920s that has had
the greatest impact on contemporary theories of cognitive development than that of any other
single researcher. He developed his cognitive theory by actually observing children. After many
years of observation, Piaget concluded that intellectual development is the result of the interaction
of hereditary and environmental factors. As the child develops and constantly interacts with the
world around him, knowledge is invented and reinvented. In Piaget's Theory of Development,
there are two cognitive processes that are crucial for progressing from stage to stage: assimilation,
accommodation.
The Information Processing System is a model for describing how information is received
(through the sensory registers), transferred into short-term or working memory, and ultimately
placed in long-term memory for later retrieval and further use. Information Processing is related
to both the consumer's cognitive (thinking) ability and the complexity of the information to be
brands or a combination of these factors. Consumers with higher cognitive ability actually get
more product information and are more capable of combining information on several product
A basic research concern of most cognitive scientists is discovering how information gets stored
in memory, how it is retained, and how it is retrieved. Because information processing occurs in
different stages, it is generally believed that there are three separate and sequential "storehouses"
in memory where information is kept temporarily before further processing: a sensory store, a
Sensory store: All data come to us through our senses: however the senses do not
transmit whole images as a camera does. Instead, each sense receives a fragmented piece
of information (such as the smell, color, shape, and feel of a flower) and transmits it to
the brain in parallel and perceived as a single image. The image of a sensory input lasts
for just a second or two in the mind's sensory store. If it is not processed, it is lost
immediately. For marketers this means that although its relatively easy to get
information into the consumer's sensory store, it is difficult to make a lasting impression.
This would explain why first impressions tend to last and why it's hazardous to introduce
Short-Term Store: Anyone who has ever looked up a number in a telephone book, only to
forget it just before dialing, knows how briefly information lasts in short-term storage. If
information in the short-term store to go through the process known as rehearsal (i.e. the
Long-Term Store: The Long-term store retains information for relatively extended
periods of time. Almost all of us, for example, can remember the name of our First-grade
teacher.
Failure to rehearse an input, either by repeating it or by relating it to other data, can result in
fading and eventual loss of the information. Information can also be lost because of competition
for attention.
Encoding is the process by which we select a word or visual image to represent a perceived
object. Marketers, for example, help consumers encode (translate) brands by using brand
symbols. Kellogg's uses Tony the Tiger on its frosted flakes, the green giant company has its jolly
green Giant, Dell computers turns the e in its logo on its side for quick name recognition;
Microsoft uses a stylized window, presumably on the world. "Learning" a picture takes less time
than learning verbal information, but both types of information are important in forming an
overall mental image. Other research indicates that viewer's who are very involved with a
television show respond more positively to commercials adjacent to that show and have more
positive purchase intentions. Men and women show different encoding patterns for example
although women are more likely than men to recall TV commercials depicting a social
relationship theme, there is no difference in recall among men and women for commercials that
focus on the product itself. Consumers can become cognitively overloaded when they are given a
lot of information in a limited time. The result of this overload is confusion, resulting in poor
purchase decisions.
Information does not just sit in long-term storage waiting to be retrieved/recovered. Many
information-processing theorists view the long-term store as a network consisting of nodes (i.e.
Information processing theorists view the long-term storage of information about personal
computers showing nodes (e.g. the concepts: models, monitors, manufacturers, software,
operating systems, printers) connected by links (e.g. for software: word-processing, databases,
graphics, games, spreadsheets). As individuals gain more knowledge about computers, they
expand their network of relationships and sometimes their search for additional information. This
process is known as activation, which involves relating new data to old to make the material more
meaningful. Consumer memory for the name of a product may also be activated by relating it to
the spokesperson used in its advertising. The total package of associations brought to mind when
Research has found that older adults appear to be more reliant on Schema-based information
processing strategies than younger adults. Consumers are confronted with thousands of new
products each year, and their information search is often dependent upon how similar or
dissimilar these products are to product categories already stored in memory Brands have
important advantages in advertising: consumers are more likely to recall the information they
receive on new products bearing a familiar brand name, and their family is less affected by
exposure to competitive ads. For information about a new brand or model of printer to enter our
memory, for example, we would have to relate it to our previous experience with printers in terms
Consumer researchers believe that all consumers passed through a complex series of mental and
behavioral stages when they make any purchase decision. These stages ranged from awareness, to
evaluation, to behavior, to final evaluation. Some theorists began to realize that there were some
purchase situations that simply did not call for extensive/wide/broad information processing and
evaluation, that sometimes consumers simply went from awareness of a need to a routine
purchase, without a great deal of information search and mental evaluation. Such purchases were
were called low involvement purchases, and complex-search oriented purchases were considered
high-involvement purchases.
Involvement refers to how much time, thought, energy and other resources people devote to the
purchase process. Involvement theory developed from research into hemispherical lateralization
or split-brain theory. a) The premise is that the right and left hemispheres of the brain specialize
in the kinds of information they process. b) The left hemisphere is responsible for cognitive
activities such as reading, speaking, and attribution information processing. c) The right
hemisphere of the brain is concerned with nonverbal, timeless, pictorial, and holistic information.
Individuals passively process and store right-brain information.
Right-brain theory is consistent with classical conditioning and stresses the importance of
Recent research suggests that pictorial cues help recall and familiarity, although verbal
The right-brain processing theory stresses the importance of the visual component of
Pictorial cues are more effective at generating recall and familiarity with the product,
although verbal cues (which trigger left-brain processing) generate cognitive activity that
There are limitations to split-brain theory. Research suggests the spheres of the brain do not
always operate independently of each other, but work together to process information. There is
evidence that both sides of the brain are capable of low- and high-involvement. It does seem the
right side is more cognitively oriented and the left side more affectively oriented.
A consumers level of involvement depends on the degree of personal relevance that the product
holds for the consumer. High-involvement purchases are those that are very important to the
consumer in terms of perceived risk. Low-involvement purchases are purchases that are not very
important to the consumer, hold little relevance, and little perceived risk.
Highly involved consumers find fewer brands acceptable (they are called narrow categorizers);
regarding the purchase and will consider more brands (they are broad categorizers).
Central and peripheral routes to persuasionthe central premise is that consumers are more
likely to weigh information carefully about a product and to devote considerable cognitive effort
to evaluating it when they are highly involved with the product category and vice versa.
Use of the central route to persuasion is more effective in marketing for high-
involvement purchases.
The peripheral route to persuasion is more effective for low-involvement purchases. The
elaboration likelihood model (ELM) suggests that a persons level of involvement during
message processing is the critical factor in determining the most effective route of
persuasion.
Thus, when involvement is high, consumers follow the central route and base their
When involvement is low, they follow the peripheral route and rely more heavily on
other message elements to form attitudes or make product choices. The marketing
solid, high-quality attributes of their productsthus using the central (i.e., highly
cognitive) route.
For low-involvement purchases, marketers should use the peripheral route to persuasion,
focusing on the method of presentation rather than on the content of the message (e.g.,
through the use of celebrity spokespersons or highly visual and symbolic advertisements).
Measures of Involvement
Researchers have defined and conceptualized involvement in a variety of ways including ego
Some studies have tried to differentiate between brand involvement and product
involvement.
Others differentiate between situational, enduring, and response involvement. The lack of
measurement problems.
Researchers who regard involvement as a cognitive state are concerned with the
Researchers who focus on the behavioral aspects of involvement measure such factors as
Others argue that involvement should be measured by the degree of importance the
Involvement theory has a number of strategic applications for the marketer. The left-brain
implications for the content, length, and presentation of both print and television advertisements.
By understanding the nature of low-involvement information processing, marketers can take steps
Market share and the number of brand-loyal consumers are the dual goals of consumer learning.
Brand-loyal customers provide the basis for a stable and growing market share. Brands with
Recognition and recall tests are conducted to determine whether consumers remember seeing an
ad, the extent to which they have read it or seen it and can recall its content, their resulting
attitudes toward the product and the brand, and their purchase intentions.
Recognition tests are based on aided recall, although recall tests use unaided recall. In recognition
tests, the consumer is shown an ad and asked whether he or she remembers seeing it and can
specific television show, and if so, can recall any ads or commercials seen, the product
advertised, the brand, and any salient points about the product.
ability to process the information, and the consumers motivation (or level of involvement). To
ensure a high level of comprehension, many marketers conduct copy testing either before the
Pre-tests are used to determine which, if any, elements of an advertising message should be
revised before major media expenses are incurred. Post-tests are used to evaluate the
effectiveness of an ad that has already run, and to identify which elements, if any, should be
Brand loyalty is the ultimate desired outcome of consumer learning. There is no single definition
of this concept. Attitudinal measures are concerned with consumers overall feelings (i.e.,
evaluation) about the product and the brand, and their purchase intentions. Behavioral measures
are based on observable responses to promotional stimulipurchase behavior, rather than attitude
A basic issue among researchers is whether to define brand loyalty in terms of consumer behavior
or consumer attitudes. Behavioral scientists who favor the theory of instrumental conditioning
believe that brand loyalty results from an initial product trial that is reinforced through
satisfaction, leading to repeat purchase. Cognitive researchers, on the other hand, emphasize the
role of mental processes in building brand loyalty. They believe that consumers engage in
extensive problem solving behavior involving brand and attribute comparisons, leading to a
of total purchases) lack precision, because they do not distinguish the real brand-loyal buyer.
Often consumers buy from a mix of brands within their acceptable range (i.e., their evoked set).
individuals relative attitude toward an entity (brand, service, store, or vendor) and patronage
behavior.
Some theorists suggest that brand loyalty is correlated with the consumers degree of
involvement. High involvement leads to extensive information search and, ultimately, to brand
loyalty. Low involvement leads to exposure and brand awareness, and then possibly to brand
habits. As a customers satisfaction with a product increases along with repeat purchases, the
Brand Equity
Brand equity refers to the value inherent in a well-known brand name. From a consumers
perspective, brand equity is the added value bestowed on the product by the brand name. Brand
equity facilitates the acceptance of new products and the allocation of preferred shelf space, and
For many companies, their most valuable assets are their brand names. Well known brand names
are known as megabrands. Because a brand that has been promoted heavily in the past retains a
cumulative level of name recognition, companies buy, sell, and rent (i.e., license) their brand
names, knowing that it is easier to buy than to create a brand name with enduring strength.
Brand equity enables companies to charge a price premiuman additional amount over and
above the price of an identical store brand. A relatively new strategy among some marketers is
co-branding (also called double branding). In co-branding, two brand names are featured on a
single product. It uses another products brand equity to enhance the primary brands equity.
Some experts believe that using a second brands equity may imply that the host brand can no
longer stand on its own. Others question whether a co-branded product causes consumer
confusion as to who actually makes the product, and whether the host brand can survive if the
second brand endorsement is taken away. Brand equity is important to marketers because it leads
to brand loyalty, which in turn leads to increased market share and greater profits. To marketers,
the major function of learning theory is to teach consumers that their product is best, to encourage
______________________________________________________________________________
4. Review questions
______________________________________________________________________________
5. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 2: LESSON 10
1. What is personality?
2. Nature of personality
4. Theories of personality
6. Brand personality
8. Lifestyle
9. Classifications of Lifestyle
1. What is personality?
Consumer purchase decision making process is influenced by their personality traits. This factor
motivates marketers to understand Personality traits and its influence on consumer behavior.
Personality is a very subjective concept. It may be the result of heredity factors, social or
Personality is the dynamic organization within the individual of those psychophysical systems
Personality can be defined as those inner psychological characteristics that determine and reflect
how a person responds to his environment. Understanding these inner characteristics (qualities,
attitudes, and traits) is essential for the marketers because they have an influence on consumer
buying behavior.
2. Nature of personality
is a unique combination of certain factors; no two individuals are exactly same. But.
change under some special circumstances. These special circumstances may be good
or bad. A good circumstance may be a major career promotion; whereas a bad one
and enduring. Generally a person adopts a consistent pattern of response to all the
internal and external factors in the environment. That helps marketers in predicting
their behavior, segmenting the market and modifying the marketing mix to suit the
personality is just one of the many factors affecting the consumer purchase decision.
are:
processes
conditioning
measurement.
gratify his or her physical needs and the necessity to function as a responsible
member of society. The theory was built on persons childhood experiences and
consists of three interacting systems: the id, the superego and the ego. The id
represents the most primitive and physiological needs of hunger, thirst and love.
deriving it. It operates according to the pleasure principle, wherein the behavior
is guided by the primary desire to maximize pleasure and avoid pain. The
internalizes societys rule and works to prevent the id from seeking selfish
the superego. In between two, there is ego which exercises control and maintain
balance. It creates a balance between the impulsive drives of id and the social
constraints of the superego. It tries to balance the two according to the reality
principle, whereby it finds ways to gratify the id that will be acceptable to the
outside world. Freud has also given stages of development of personality over a
period of time. He says an individual passes through- oral, anal, phallic, latent
traits.
interdependence of the individual and the society. The individual strives to meet
the needs of society, whereas society helps the individual attain his goals. It is
seek to attain rational goals called style of life (Alfred Adler); people attempt to
Horney said that individuals can be classified into: Compliant (who move toward
others), Aggressive (who move against others) and Detached (who move away
from others).
characteristics called traits. It assumes that traits are common to many individuals
and vary in absolute amounts among individuals and can therefore act as a basis
for segmentation. Also assumed is the fact that these traits are relatively stable
just one personality trait. Such a research studies the relationship between
Consumer innovativeness- consumer innovators are the ones who are the first ones to
adopt the new product, service or offering. They are critical to the success of any new
product launch. Certain characteristics help in identifying the consumer innovators. These
are:
o Dogmatism- it is the personality trait that measures the degree of rigidity that
individuals display toward the unfamiliar and toward information that is contrary
(people rely on their own inner values in evaluating the product); to other
is more than the current lifestyle, the person is slightly dissatisfied. If OSL level
is lesser than the current lifestyle of the person, he is said to be at rest or relief.
o Variety- novelty seeking- this measures the degree to which the consumers seek
Consumers with higher Need for cognition respond more strongly to the
information; verbalizers are the ones with a strong preference for written or
verbal information.
possessions as essential to their identity and living. They believe in acquiring and
are addicted towards consumption though that may harm them or others around
them. Examples- consumers are addicted towards goods like alcohol, cigarettes
etc.
hobbyists are the best example of this. They do not keep their liking for the
product a secret. Their involvement is openly shared by others having similar
made products and those that are not. It is done using the CETSCALE (consumer
ethnocentrism scale). Highly ethnocentric consumers tend to see adopting foreign made
Such classifications of personality traits that have an influence on consumer buying behavior
helps Marketers design and modify their marketing mix to suit the requirement of the particular
personality type.
6. Brand personality
It is concerned with attributing various personality traits to different brands across product types.
Example- Volvo stands for safety. Such ascription of personality traits to brands reflects
consumers vision of the product. Related to this is a concept called Brand personification. It is
concerned with recasting consumers perception of attributes in a particular product into a human
like character. Jennifer Aaker (1997) has given five dimensions of brands personality (sincerity,
excitement, competence, sophistication and ruggedness) along with 15 facets of personality that
flows from such dimensions ( down to earth, honest, wholesome, cheerful, daring, spirited,
imaginative, up to date, reliable, intelligent, successful, upper class, charming, outdoorsy and
tough). A product personality also links a product to a gender. Certain colors also are linked with
Self image is the perception that one has about oneself. It is important to understand it because
consumers patronize products that correspond to his self image. Consumers portray multiple
selves by responding and acting differently to different situations. Self image is the result of the
when they choose a particular brand. This theory holds that individuals have a concept of self-
based on which they think are (the actual self) & a concept of which they think they would like to
be (the ideal self). Self-concept theory is governed by two principles; the desire to attain self-
consistency & the desire to enhance ones self-esteem. Attaining self-consistency means that
individuals will act in accordance with their concept of actual self. For example, a consumer may
see himself as a practical & self-controlled individual. He buys conservative suits drives a large
four door sedan, & spend quiet evenings at home. Deep down, however he would like to be more
carefree & reckless. If he were to act more like his ideal self, he might own a small sports car,
dress in jeans & sports shirts & go to rock clubs. Such actions would enhance his self-esteem by
drawing him closer to his ideal self. These self images can be:
Actual self image- how consumers really see themselves as. Applied to marketing, the
concept of actual self says that consumers purchases are influenced by the image they
Ideal self image- how consumers would like to see themselves as. The concept of the
ideal self relates to ones self esteem. The greater the difference between the actual self
dissatisfaction with oneself could influence purchases, particularly for products that could
enhance self-esteem.
Ideal social self image- how consumers would like others to see him as
Expected self image- how consumers expect to see themselves at some specified time in
future.
Marketers can segment the markets based on these self images and position their products
accordingly. Related to this is the concept of Extended self. The possessions one has are
considered to be extensions of the self. It extends self actually (provides utility), symbolically
(feel better), by conferring status etc. when a person tries to change himself by becoming a
8. Lifestyle
In sociology a lifestyle is the way a person lives. This includes patterns of social relations,
makes sense to both others and the self in different times and places. Therefore, a lifestyle
can be used to forge a sense of self identity and to create cultural symbols for the way a
person is. The behaviors and practices within lifestyles are a mixture of habits, conventional
endeavor to match consumer aspirations with products. Lifestyles refer to patterns in which
people live, spend time and money. These patterns reflect by demographical factors (the
habits, attitudes, tastes, moral standards, economic level and so on that together constitute
the mode of living of an individual or group); that include things such as the individuals
activities in addition to their interests. As a construct that helps consumers interact with their
worlds, lifestyles are a subject to change every time. Consumer behavior research uses
are those lifestyles that consume less of the planets resources then other types of lifestyles. If
everyone on the planet had a lifestyle like the typical North American then we would need
The term "lifestyle" first appeared in 1939. Alvin Toffler predicted an explosion of lifestyles
racial group. As such the minority culture was always seen as alien or other. "Lifestyles", by
comparison, are accepted or partially accepted differences within the majority culture or
group. This tolerance of differentiation within a majority culture seems to be associated with
9. Classifications of Lifestyle
A number of lifestyle classifications have been proposed by market researchers, including the
following:
AIO (Activities, Interests, Opinions): The lifestyle involves three dimensions viz.
Activity (in what and how people spend their time in activities), Interest (what is
more important to them in their surroundings) and Opinion (views about themselves
and the world around them). This approach seeks, via long questionnaires, to measure
then allocated (using sophisticated computer analysis techniques) to the AIO (life-
style) groups.
VALS (Value Life-Styles): Arnold Mitchell (of SRI International) developed similar
groupings. He drew up four main categories subdivided into nine life-styles, again
conservative and so on), 'emulators' (ambitious, upwardly mobile and so on) and
'achievers' (leaders who make things happen and so on) account for a majority of human
beings. Thus, a newspaper might expect to target 'achievers' and possibly to address a
larger total market segment than the 'Guardian', which might be looking to the 'societally
conscious' for its most ardent supporters. Less widely reported is that the VALS typology
also suggests that there is a possible progression within the life-styles - from 'survivors'
through to 'integrated'.
a basis for describing segments. Under the analysis, questions about activities, interests
and opinions are asked. In some instances, psychographic measures are customized for
the brand of interest. In other situations, data collected by commercial services are used.
The Values and Lifestyles (VALS) Program, established in 1978, is one of the original
corporate image. The resulting theoretical framework was built on two large-scale, late-
1980s surveys (one to identify psychological scales that predict lifestyles and another to
Under the analysis, the primary analysis of segments and targets is typically performed
supplemented by psychographic data to offer additional insight about the goals and
______________________________________________________________________________
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 2: LESSON 11
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1. Introduction
3. Components of communication
6. Review questions
7. Further readings
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1. Introduction
Modern marketing calls for more than just developing a good product, pricing it attractively,
and making it available to target customers. Companies must also communicate with current
and prospective customers, and what they communicate should not be left to chance. For
most companies, the question is not whether to communicate, but how much to spend and in
what ways. All of their communications efforts must be blended into a consistent and
sender to the receiver with the information being understood by the receiver. It is a tool in the
hand of the marketers to persuade consumers to act in a desired way. It can be- verbal
(written or spoken), visual (picture, illustration), and symbolic (representative. Higher prices
may reflect better quality) or a combination of all. Communication can evoke emotions that
put consumers in a more receptive frame of mind, and it can encourage purchases that help
consumers solve their problems. It acts as a bridge between a marketer and a consumer.
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2. Need of understanding communication process- marketers must move towards viewing
communications programs need to be developed for specific segments, niches, and even
communication works.
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a. The Sender- it is the party sending the message to another party. It represents the
initiator of the communication process and can be from following two sources:
c. The Receiver- it represents the party receiving the message sent by another party.
The receiver is the targeted prospect or a customer. There are also intermediary
receive trade. There are also unintended audiences, which include everyone who
is exposed to the message, whether or not they are specifically targeted by the
source.
d. Decoding- it is the process by which the receiver assigns meaning to the symbols
which the message moves from sender to receiver. It can be of two types:
impersonal communication.
f. The Message- it represents the set of symbols that the sender transmits. It can be
two types:
impersonal channels.
process, which results in the receiver's getting a different message than the one
the sender sent. For a message to be effective, the sender's encoding process must
mesh with the receiver's decoding process. Thus, the best messages consist of
words and other symbols that are familiar to the receiver. The more the sender's
field of experience overlaps with that of the receiver, the more effective the
below:
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make the consumer aware of the product, induce purchase or commitment, create a
positive attitude toward the product, give the product a symbolic meaning, or show how it
can solve the consumers problem better than a competitive product (or service) can. The
a. The message initiator (Source) - the sender must decide to whom the message
needs to be send and what meaning it should convey. It must encode the message
in such a way that its meaning is interpreted by the targeted audience in precisely
the intended way. Encoding can be done through words, pictures, symbols,
relations efforts and tends to be more believable because its commercial origins
and intent are not readily apparent. Source element of communication involves
following issues:
of which are the intentions of the source. If the receiver perceives any
type of personal gain for the message sponsor as a result of the proposed
types:
target audiences.
ii. The sleeper effect- it represents the effects of time on source credibility.
negative credibility effects tend to disappear after six weeks or so. This
forget the source of the message faster than they forget the message
serves to jog the audiences memory, and the original effect re-manifests
itself. Thus, the marketer who uses a high credibility spokesperson must
persuasion.
b. The target audience (receivers) - the receivers decode the messages they receive
determines how much attention is paid to the message and how carefully
it is decoded. Thus, these are important considerations in the design and
advertising message appears and the content of the ad itself; these in turn
channels.
communications is the receivers response. Only through feedback can the sender
determine if and how well the message has been received. An advantage of
message needs some method for determining whether its mass communication is
being received by the intended audience, understood in the intended way, and
usually inferred. Receivers buy (or do not buy) the advertised product; they
renew (or do not renew) their magazine subscriptions, etc. Another type of
feedback that companies seek from mass audiences is the degree of customer
out which media are read, which television programs are viewed, and
the ad, an alert sponsor modifies or revises the message. For food
effectiveness research also called copy testing can be done before the
(post testing).
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target audience in mind. The audience may be potential buyers or current users,
those who make the buying decision or those who influence it. The audience may
be individuals, groups, special publics, or the general public. The target audience
will heavily affect the communicator's decisions on what will be said, how it will
be said, when it will be said, where it will be said, and who will say it. It is
essential that the sponsor segment the audience into groups that are homogeneous
specific messages for each target group and run them in specific media that are
seen or heard by each target group. There is a need for an umbrella message for
all audiences from which they spin off specific messages for targeted segments.
b. Determining the Communications objectives- Once the target audience has been
defined, the marketing communicator must decide what response is sought. The
c. Media strategy-it is concerned with the placement of ads in the specific media
read, viewed or heard by target markets. For this, the advertiser must develop a
Consumer profile of their target customers which includes the specific media
they read or watch. Media organizations develop their Audience profiles. There
objectives; the marketer first select a general media category to enhance the
message they want to convey. Each media category has its own specific effect on
advertising content. On identifying the general media category, the marketer can
choose the specific medium in that category that reaches their intended
audiences. The marketer can use the World Wide Web to reach its audiences.
Also, the media strategy called Precision targeting can be used. It involves
creating a specific niche in the marketplace by catering to the needs and interests
information that the sender wishes to convey to the intended audience. Senders
must recognize what they are trying to say and their audiences characteristics so
more likely to devote active cognitive effort to evaluating the pros and
had better recall than non comparative ads, and were perceived
as more relevant.
care.
only the brand name and the persuasive message are retained
segment of the population that suffers from ailments that are not
and friends.
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6. Review questions
______________________________________________________________________________
7. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
______________________________________________________________________________
UNIT 3: LESSON 12
______________________________________________________________________________
2. Types of Families
7. Review questions
8. Further readings
______________________________________________________________________________
Traditional definition of Family- it is defined as two or more persons related by blood, marriage,
or adoption who reside together. The individuals who constitute the family can be considered
members of the most basic social group who live together and interact to satisfy their personal
Households- it is a broader concept and might include individuals not having blood relations,
related by marriage or adoption. Thus, it refers to all persons; both related and unrelated who
occupy a housing unit. For the purposes of consumer behavior though both Family and
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2. Types of Families- there are four types of Families that can be seen. These are:
Married couple- it consists of husband and wife. It represents either newly married
couples who have not yet started a family or older couples who have already raised their
children.
Single parent family- it as a result of divorce, separation consists of just one parent and at
Which type of family is predominant depends on the type of culture the person lives in.
Family size depends on factors such as educational level, fertility rate and culture and
religion.
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3. Variables affecting Family and Household- the variables that affect Family and
household are:
behavior are- age of the head of the household or family; marital status; presence of
children and employment status. Children increase demand for various goods in the
Sociological variables- sociological variables that explain how families function are:
o Cohesion- it represents the emotional bonding and closeness between the family
members.
o Adaptability- it measures the ability of a family to change its power structure,
developmental stress.
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4. Role behavior in Family and Household though family is a basic decision making unit,
still the attitudes and behavior of one of the family member is important. He is considered
to be the major decision maker for the family. Individual members of families often serve
different roles in decisions that ultimately draw on shared family resources. Therefore, it
is necessary to know the various roles and behavior patterns exhibited by the family
members.
According to Talcott Parsons, Family and Households exhibits two kinds of role behaviors. These
are:
Expressive roles- involve supporting other family members in the decision making
process and expressing familys emotional needs including upholding family norms.
These have an affect on allocation of income among products and consumption. The roles
behavior in the family purchase decision making can be of two types. These are:
Individual roles in Family purchases- these roles can be assumed by any of the household
members. Both multiple roles and multiple actors are normal. The number and identity of
the family members who fill these roles vary from family to family and for various
product types. A single family member may assume multiple roles while deciding on the
o Initiator- is the one who initiates a family thinking about buying the products
o Gatekeeper- is the one who controls the flow of information into the family. They
relevance. These individuals often have a great deal of power because they may
o Influencer- is the one whose opinions are sought concerning criteria the family
should use in purchases and which products or brands most likely fit those
evaluative criteria. Influencers do not ultimately have the power decide between
alternatives, but they may make their wishes known by asking for specific
o Decider- is the one with the power to determine unilaterally or jointly whether to
shop for, purchase, use, consume or dispose off a specific product or service. The
whether to buy;
When to buy.
o Buyer- is the one who make the actual purchase by visiting the store, calling
suppliers, writing checks, brings the product home etc. Note, however, that the
role of the decision maker is separate from that of the buyer. From the point of
view of the marketer, this introduces some problems since the buyer can be
the decision maker. Also note that the distinction between the buyer and decision
maker may be somewhat blurred. The decision maker may specify what kind of
product to buy, but not which brand; the buyer may have to make a substitution if
the desired brand is not in stock; the buyer may disregard instructions (by error or
deliberately).
o Maintainers- is the one who service or repair the product so that it will provide
continued satisfaction
o Disposers- are the one who initiates or carry out the disposal or discontinuation
Marketers need to communicate with consumers assuming each of these roles. Family marketing
focuses on the relationships between family members based on the roles they assume, including
Spousal roles in buying decisions- marketers want to know the relative amount of
influence that a husband or a wife have while taking purchase decisions. The following
o Husband dominant- the husband or male head of the household makes the
o Wife dominant- the wife or the female head of the household makes the majority
of the decisions.
o Joint (syncratic) - wherein most of the decisions are made by both husband and
wife.
The type of spousal role depends on the type of product for purchase, stages in the decision
passing through the different stages of the decision making process. It may be
minimal for low involvement products and more pronounced for high
involvement ones. The information search stage is more autonomic than joint
when compared with final decisions. Marketer needs to understand this influence.
o Influence of employment- the high number of women working outside the home
decision making.
o Influence of gender- as the gender gap narrows, there are more joint decisions
It should be noted that family decisions are often subject to a great deal of conflict. The
reality is that few families are wealthy enough to avoid a strong tension between demands
on the familys resources. Conflicting pressures are especially likely in families with
children and/or when only one spouse works outside the home. Note that many decisions
inherently come down to values, and that there is frequently no "objective" way to
arbitrate differences. One spouse may believe that it is important to save for the
childrens future; the other may value spending now (on private schools and computer
equipment) to help prepare the children for the future. Who is right? There is no clear
answer here. The situation becomes even more complex when more partiessuch as
else.
o Reasoning- where one is trying to get the other person(s) to accept ones view
o Impression management- where one tries to make ones side look good
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described as the process whereby an infant gradually becomes a member of society and
acquires the skills that are required to function in the culture he or she is born into. To
children, the family imparts basic values, moral and religious principles, interpersonal
skills, manners of speech, selection of education and career goals and behavior as per the
culture of the family. Marketers target parents looking for assistance in this task of
socialization. Also, it is a known fact that the attitudes we develop as children, we carry
forward when we are adults. There are the following types of socialization:
believe themselves to be the centre of everything that takes place around them
and have to be taught the rules of their society and their place within it. The
process of learning the rules about how to behave is called socialization and it
lasts for all of our lives. Family and observation has a major impact on molding
this behavior. Shared shopping experiences and observing the parents taking the
purchase decision leads to consumer socialization among children. Children are
socialized and at the same time influence other members too. Consumer
attitudes; and
everyone has to go through, it is not the same for everyone. Boys are socialized
in different ways than girls. Families from different social classes socialize their
Economic well being- family provides financial means to its dependant members though
the way family divides its responsibilities for providing economic well being has
its members. The family provides support, encouragement and assistance to its family
members. It helps them in coping up with various changes and problems. They can
survive without, but for most people, their family is their strongest emotional bond.
Suitable family lifestyles family establishes a suitable lifestyle for its members. It
greatly influences the consumption patterns. Upbringing, experience, and the personal
and jointly held goals of the spouses determine the importance placed on education or
career, on reading, on television viewing, on the frequency and quality of dining out, and
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6. Family Life cycle (FLC)
It depicts that individuals and families tend to go through a "life cycle" as they progress in life.
This analysis helps marketers to segment families in terms of a series of stages spanning the life
commonly used demographic variables such as marital status, size of family, age of family
members and employment status of the head of the household. The ages of the parents and the
relative amount of disposable income can be inferred from the stage in the Family Life Cycle.
There are two types of Family life cycles. Generally, there are two main themes in the Family
As a person gets older, he or she tends to advance in his or her career and tends to get greater
Unfortunately, obligations also tend to increase with time (at least until ones mortgage has
been paid off). Children and paying for ones house are two of the greatest expenses. These
are:
families pass, starting with Bachelorhood, to Marriage (creation of basic family unit),
to Family growth (birth of children), to Family contraction (grown children leave the
household) and ending with Dissolution of the basic unit (death of one spouse).
They spend most of their income on rent, basic home furnishings, the
immediately after the marriage vows are taken and generally continues until
the arrival of the couples first child. This group focuses its expenditure on
adjustment to married life. If both husband and wife are working, their
combined income often permits a lifestyle that provides them with the
living at home. It is also called the Full nest stage. It extends for over more
than 20 year time. This stage can be divided into certain small stages, which
are:
members and the structure of the family undergo a change. Also, there are
orientated, and there is little surplus cash for luxury items. Although they are
receptive to new product ideas, this group sees economy as being the over-
riding factor when making purchases. Disposable income will probably have
increased, often with both parents working and children being relatively
independent. In some cases children may be working and the parents are able
to engage increasingly in leisure activities often in the form of more than the
furniture, are often replaced at this stage. Such purchases are often made with
home. It is also called an Empty nest stage. During this stage though there
and add value rather than to introduce new concepts and ideas. They have
more leisure time. They have time to do things they like and travel a lot.
For this reason, families in this stage are an important market for luxury
retire while they are still in good health. These people tend to use television
easier. At this stage, most consumer durables have been purchased although
increasing rapidly. Such people tend to be less reliant solely on the State
more active lives and the tourist industry now actively targets this particular
market segment.
Non- traditional Family Life Cycle- as the Traditional Family Life Cycle does not
Factors responsible for such an extended life cycle are- divorces, later marriages etc.
It includes not only family households but also non family households: those
thus become attractive targets for many marketers. These Non traditional stages are
o Childless couples- where married couples may elect not to have children
o Couples who marry later in life (in their 30s or later)- because of career
orientation
o Couples having first child later in life- they are likely to have fewer children
o Single parents 2- young man or woman who has one or more children out of
wedlock
o Unmarried couples
o Divorced persons without children
o Widowed persons
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7. Review questions
What is the concept of Family life cycle? What strategies should the marketer adopt
______________________________________________________________________________
8. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
______________________________________________________________________________
UNIT 3: LESSON 13
REFERENCE GROUP
1. What is a Group?
6. Opinion leadership
7. Review questions
8. Further readings
1. What is a Group?
A Group is a collection of individuals interacting with one another so that each person influences
and is influenced by each other person to some degree. Group members are distinguished from a
mere aggregate of individuals by having a shared purpose, by being aware of each other, and by
interacting and communicating with each other. A team can be regarded as a special type of
group, which has a well-defined structure, organization, and communication patterns. Team
assignments are usually designated before an activity, whereas those of other types of groups are
belong, whether or not they actually do. Their relationship to their reference group may influence
their buying behavior. For example, if a man buys a more expensive car than he normally would
because his neighbors drive that particular model; his buying behavior is seen to be influenced by
The term reference group can refer to any and all groups that influence the attitudes and behavior
of individuals. The theory is often used to describe two major types of relationships between
individuals and groups. These two major dimensions are known as "normative" reference group
behavior and "comparative" reference group behavior. Because some reference groups teach
individuals how they should behave, "normative" reference group theory is sometimes referred to
as a guide for individuals' behavior. Additionally, some social groups, or "comparative" reference
groups, give individuals a basis for comparing themselves or their group to other individuals or
groups. Comparative reference groups also influence individuals' feelings and behavior.
A normative reference group is described as a group in which individuals are motivated to gain or
maintain acceptance. To promote this acceptance, individuals hold their attitudes in conformity
with what they perceive to be the consensus of opinion (norms) among the group members
(Kelley, 1952). In normative reference group theory, the group sets and enforces standards for
individuals. Such standards are often referred to as group norms; thus we have the "normative
A comparative reference group is used to describe a group which individuals use as a standard or
groups. In comparative reference group theory, an evaluation of the individual by members of the
reference group is largely irrelevant. In regard to comparative reference groups, the group is
Multiple reference groups are described as the numerous reference groups individuals use in
appraising the many facets of the self. Each of the various reference groups is specialized as a
point of comparison for one particular dimension. In forming the total disposition of an
individual's attitudes, several reference groups may be employed; each may be accorded a limited
jurisdiction over some specialized attitude sphere. Influences from multiple reference groups can
also result in internal or social discord for individuals when the values and or behaviors of one of
the individual's reference groups contrast or conflict with the values and behaviors of another
group that the same individual uses as a reference point. For example, teenagers may experience
inner and social strife because the attitudes, behavior, and norms of their peer group contrasts or
conflicts with the attitudes, behaviors, and norms of their family group. Graduate students may
experience internal and societal discord because the attitudes, behavior, and values of the
academic world may contrast or conflict with the attitudes, behavior, and values of their private-
life world. Library users from various cultures may experience social and informational
perplexities because the attitudes, norms, and information world of their unique groups may
contrast or conflict with the attitudes, norms, and information world of traditional European-
Information and experience: An individual who has first hand experience with the
product or service, or can easily obtain full information about it, is less likely to be
influenced by the advice of example of others. For instance, when a young corporate
sales representative wants to impress his client he may take her to a restaurant that he
knows from experience to be good or to one that has been highly recommended by the
local newspapers Dining out Guide. If he has neither personal experience nor
attitude and behavior change. For example, when consumers are concerned with obtain
accurate information about the performance or quality of a product or service, they are
That is, they are more likely to be convinced by sources with high reliability.
When consumers are primarily concerned with the acceptance or approval of others they
like, with whom they identify, or who offer them status or other benefits, they are likely
conform to the behavior of a powerful person or group, but are not as likely to experience
Different reference groups may influence the beliefs, attitudes, and behavior of an
individual at different points in time or under different circumstances. For example, the
dress habits of a young male executive may vary, depending on his place and role in the
workplace.
purchase decision varies according to how visually or verbally noticeable the product is
to others. A visually conspicuous (noticeable) product is one that will stand out and be
noticed (such as luxury item or novelty product); a verbally conspicuous product may be
highly interesting, or it may be easily described to others. For example a new automobile,
Consumers potentially influenced by a diverse range of people that they come in contact with or
Friendship groups: Friendship groups are typically classified as informal groups because
they are usually unstructured and lack specific authority levels. In terms of relative
influence after an individuals family, his or her friends are most likely to influence the
individuals purchase decisions. Friends fulfill a wide range of needs: they provide
reluctant to discuss with family members. Friendships are also a sign maturity and
independence, for they represent a breaking away from the family and the forming of
social ties with the outside world. The opinions and preferences of friends are an
Shopping groups: Two or more people who shop together for food, clothing or simply to
pass the time, can be called a shopping group. In instances where none of the members of
the shopping group knows much about the product under consideration (such as an
expensive home entertainment center), a shopping group may form for defensive reasons;
members may feel more confident with a collective decision. The in-hope party approach
bandwagon effect: undecided guests often overcome an unwillingness to buy when they
see their friends make positive purchase decisions. Some of the guests may feel grateful
to buy because they are in the home of the sponsoring host or hostess.
Workgroups: The formal work group consists of individuals who work together as part of
a team, and thus have a continuous opportunity to influence each others consumption
related attitudes and actions. Informal friendship-work groups consist of people who have
become friends as a result of working for the same firm. Members of informal work
groups may influence the consumption behavior of other members during coffee or lunch
brand choices and that most women now work outside of their homes, firms that in the
past sold their products exclusively through direct calls on women in their homes now are
redirecting their sales efforts to offices and plants during lunch hour breaks.
Internet Communities: People are free to express their thoughts, to be emotional and
close with those they do not know and have never met, and even to escape from those
they normally interact with by spending time on the Internet. The secrecy of the Net gives
it users the freedom to express whatever views they wish, and to also benefit from
enjoying the views of others. Because of this secrecy Internet user can say things to
others that they would not say in face-face interactions. Internet permits people shift from
group has emerged in response to the commercial movement. Today there are a very
large number of such groups, who are dedicated to providing consumers with assistance
in their effort to make the right purchase decision, consume products and services in a
healthy and responsible manner, and to generally add to the overall quality of their lives.
Consumer-action groups can be divided in to two broad categories viz. those that
organize to correct a specific consumer mistreatment and then disband and those that
organize to address broader, more continual problem areas and operate over an extended
or indefinite period of time. A group of parents who attend a meeting of the local school
board to question some of the decisions made by the high school principal are examples
Advertisers to communicate with their markets use various reference group appeals very
effectively. This identification may be based on admiration (of a cricketer), on aspiration (of a
celebrity or a way of life). In some cases the prospective consumer may think, If she uses it, it
must be good, if I use it, Ill be like her. There are following five major types of reference group
The Expert: For example, an advertisement for a quality frying pan any feature the
endorsement of a chef (Like: Sanjeev Kapoor) or an ad for cricket shoes might feature the
products, with the expectation that the reading or viewing audience will react positively
to the celebritys association with their products. By celebrity credibility, we mean the
audiences perception of both the celebritys expertise (how much the celebrity knows
about the product area) and trustworthiness (how honest the celebrity is about what he or
she says about the product). To illustrate, when a celebrity supports only one product,
consumers are likely to see the product in a highly favorable light and indicate a greater
intention to purchase it. In contrast when a celebrity approves a variety of products, his or
her perceived trustworthiness is reduced. Not all companies feel that celebrity endorses is
the best way to advertise. Some companies avoid celebrities because they fear if the
celebrity gets involved in some undesirable act or event (e.g. a scandal), the negative
news or press coverage will negatively impact on the sales of the endorsed brand.
perspective customers that someone just like them uses and is satisfied with the product
or service being advertised. The common man appeal is especially effective in public
health announcements (such as anti smoking or high blood pressure messages), for most
people seem to identify with people like themselves when it comes to such messages.
These commercials are known as slice-of-life commercials because they focus on real
life situations with which the viewer can identify. For example, one commercial focus
on how a laundry detergent (Like: Ariel) can deodorize clothes, another talk about how
certain breakfast cereal (Like: Kelloggs) provides enough energy to get an individual
through a hectic morning. When viewers identify with the situation, they are likely to
achievements and the status completely presented on business leaders in United States
and also nowadays in India. The appearance of a companys chief executive in its
advertising seems to mean that someone at the top is watching over the consumers best
interests, and it encourages consumers to have more confidence in the firms products or
services.
Trade or Spokes Characters: With few exceptions, trade characters serve as an exclusive
personality for the product or service and make the product appear much friendly (like
Other Reference Group Appeals: The retailer and the magazine are functioning as frames
of reference that influence consumer behavior. Seals of approval and even objective
product ratings can serve as positive endorsements that encourage consumers to act
favorably toward certain products. For instance, many parents of young children look for
the Indian Dental Associations seal of approval before selecting a brand of toothpaste
(like Colgate).
6. Opinion leadership- it depicts the informal influence that others have on consumers behavior.
This influence is called word of mouth communication or Opinion leadership. Those who
influence are called Opinion leaders and those that are influenced are called Opinion receivers.
Opinion leadership (or word-of-mouth communication) is the process by which one person (the
opinion leader) informally influences the actions or attitudes of others, who may be opinion
seekers or merely opinion recipients. The key characteristic of the influence is that it is
interpersonal and informal and takes place between two or more people, none of whom represents
may also take place in a telephone conversation or can be implied by non verbal observations.
One of the parties in a word-of-mouth encounter usually offers advice or information about a
product or service, such as which of several brands is best, or how a particular product may be
used. Opinion leader may become an opinion receiver when another product or service is brought
up as part of the discussion. Individuals who actively seek information and advice about products
are often called opinion seekers. These are really influential in product related decisions. Example
of opinion leadership- a person seeks the advice of his friend for a brand decision on purchase of
because they are perceived as objective concerning the product information/advice they
Positive and negative product information-as against a marketer, opinion leaders based on
their experience with the product provide both favorable and unfavorable information
Information and advice- Opinion leaders are the source of both information and advice.
They may simply talk about their experience with a product, relate what they know about
that is, opinion leaders often specialize in certain product categories about which they
offer information and advice. When other product categories are discussed, they are
product-related situation may become opinion receivers in another situation, even for the
same product. An opinion receiver may also influence an Opinion leader as the result of a
product-related conversation.
The needs of opinion leaders- People may provide information or advice to others to
satisfy some basic need of their own. This need can be:
purchase decision.
o For self confirmation- when he can influence a friend to also buy that brand,
messages and slogans tend to discuss them and the products they are
The needs of opinion receivers-people may seek information from others for the
following reasons:
service.
shopping trips.
opinion leaders in their role. These buyers have a formal relationship which is
occupation related and share advice in the form of formal instructions. They are paid
for their advice and usually specialize in a particular product category. As against the
advice given by opinion leaders, the second opinion is taken on rare occasions only.
Self designating method- respondents are asked to evaluate the extent to which
framed to assess the impact. The self-designating technique is used more often
to bias.
about the product or brand under study and the specific individuals (if any) who
provided them with advice/information about the product or brand under study.
In the first case if the respondents identify one or more such individuals, the
individuals so named.
specific group. He is asked to identify those individuals in the group who are
most likely to be opinion leaders. The key informant need not be a member of
that group. It is a less expensive method than the above two methods as the
focus is on one or few key informants only. The key informant method, however,
which involves placing new products or new product information with selected
information about the opening of a new book store in the area by inviting few
Profile of opinion leaders for identifying them: the profile of opinion leaders is likely to
be influenced by the context of the specific product category, as opinion leaders are
interested in the particular product area, generally are consumer innovators, are
from non personal sources, are experts in their area of influence, are well read
with respect to their specific product category and have greater exposure to
Frequency and opinion leadership overlap: certain issues related to this are:
Opinion leadership is not a rare phenomenon and shows that people are sufficiently
Opinion leadership overlap- it suggests that opinion leaders in one product category tend
Market mavens- these are special category of opinion leaders who posses a wide range of
information about many different types of products, retail outlets and other dimensions of
markets. They are like opinion leaders except the fact that their influence extends beyond
the realm of high involvement products. Also, their influence is a result of not necessarily
experience with the product, but may be because of the knowledge or expertise they
possess.
setting. Also, opinion leaders and receivers meet and discuss given a particular situation like a
club lunch or an informal meeting. Internet and World Wide Web is providing an environment for
word-of-mouth communications.
Interpersonal flow of communication- it is of following two types:
Two step flow of communication theory- opinion leaders act as direct receivers of
information from impersonal mass-media sources and transmits (and interprets) this
Step 1- information flow from mass media to opinion leader in a single direction.
Step 2- information flow from opinion leader to opinion receiver in a single direction
Multi step flow of communication theory-it depicts the transmission of information from
the media as a Multi step flow. It recognizes the information and influence as two way
processes in which opinion leaders both influence and are influenced by the opinion
receivers.
Step 1a- depicts flow of information from mass media to opinion leader.
Step 1b- depicts flow of information from mass media to opinion receivers and information
Step 2- depicts flow of information and influence from opinion leader to opinion receiver.
Step 3- depicts flow of information and influence from opinion receiver to opinion leader.
Opinion leadership and firms marketing strategy; marketers know the power of opinion
persuade consumers to tell others about the product and its features so as to encourage
need for consumers to actually seek product advice from others. Example- two women
to control. Negative comments, frequently in the form of rumors that are untrue, can
market into opinion leaders and opinion receivers and then targeting promotional
messages to opinion leaders who are likely to carry the word to the masses. A firm can
also go for creating product specific opinion leaders. This can be done by taking socially
involved or influential people and deliberately increasing their enthusiasm for a product
category.
_____________________________________________________________________
7. Review questions
Explain the various types of Reference group appeals that a marketer can use.
Explain the concept of Opinion leadership and various reasons behind its
effectiveness.
measured?
_____________________________________________________________________
8. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden Press,
Chicago, 1990
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
_____________________________________________________________________
UNIT 3: LESSON 14
SOCIAL CLASS
7. Review questions
8. Further readings
Just as Marketers divide society into groups for segmentation, sociologists have developed ways
to describe meaningful divisions of society in terms of peoples relative social and economic
A Social class is the overall rank of people in a society. A Social class is defined as the division
of members of a society into a hierarchy of distinct status classes, so that the members of each
class have relatively the same status and members of all other classes have either more or less
status. Social classes are relatively homogeneous and enduring divisions in a society, which are
hierarchically ordered and whose members share similar values, interests and behavior.
The social class research is generally called Social Stratification which refers to the creation of
artificial divisions in society. Social class is generally measured in terms of Social Status that the
members enjoy. Status groups reflect a communitys expectations for style of life among each
class as well as the positive or negative social estimation of honor given to each class. Whereas,
classes are divided based on their relation to the production and acquisition of goods; status
groups are stratified according to lifestyles and principles of the consumption of goods. But in
consumer behavior these are used interchangeably. Status is the relative ranking of members of
each social class with respect to certain status factors like- Wealth, Power, Prestige etc. In the
study of Consumer Behavior, status is defined in terms of demographics such as- Occupational
Social class is a relative term so it involves a hierarchical structure ranging from high to low.
These social class categories help members to know their position vis--vis others. The members
within the same social class become the reference group for other members. However, there are
instances of Upward and Downward social mobility. People are within the same class work in
similar occupations, have similar income levels, and usually share taste in clothing, decorating
styles, and leisure activities. These people also share many political and religious beliefs as well
as ideas regarding valued activities and goals. Many products and stores are designed to appeal to
people in a specific social class. This aspect is useful to marketers as consumers try to emulate the
purchasing behavior of their social class members or of members of higher social class. Thus, this
social stratification gives a natural base of segmenting the market for the Marketers.
positions. So the idea of self perception as a reflection of self image is used. This
judgments about social class membership of others within the same community.
However, this is a temporary judgment, the final one lies with the researcher.
variables. These may be- Occupation, Education and Family income. The
of two types:
iii. There is a new way to measure social class which is called Geo-
This has great application for the Marketer. He can use this information in various areas.
Clothing and fashion- members of social classes differ in terms of what they consider
as fashionable.
Leisure- social class membership is closely related to the choice of recreational and
Media usage- social class groupings differ in terms of their media habits and the way
b. Social classes are hierarchical in nature. They range from high to low, based on
c. Social classes generally restrict behavior and interaction between them. Members
of the same class feel comfortable together and develop other members of the
i. Closed system- once born in a particular social class, a person cant leave
ii. Open system- people have the opportunity to move up (upward mobility)
Related to social class is a term called Conspicuous consumption. It refers to the tendency of the
affluent class to demonstrate upper class membership through their possessions. These
There is a great lot of subjectivity involved while defining the number of social class categories.
There is hardly any consensus. W Lloyd Warner identified six social classes in America. These
were:
Upper upper; lower upper; upper middle; lower middle; upper lower and Lower lower. However,
Upper class- it includes the aristocracy and the upper middle class.
positions. Also included are, professionals like engineers, doctors. It is a very large class
in developing countries. The people in this class are generally very ambitious and career
conscious.
Lower class- it represents poor people who generally live below the poverty line. They
live in bad living conditions and they have to struggle for the basic resources for survival.
6. What determines social class?
For consumer behavior analysis, six variables are important determinants of a social class. These
are:
Occupation- the work consumers perform greatly effect their lifestyles and consumption
patterns. Example- a manager would spend more on lifestyle clothing and leisure vis -a
Interactions- people feel most comfortable with people having similar values and
behavior. Group membership and interactions are therefore considered to be the primary
Value orientations- values indicate the social class to which one belongs.
Class consciousness- it is the degree to which people in a social class are aware of
themselves as a distinctive group with shared political and economic interests. A persons
social class to some extent is indicated by how conscious that person is of social class.
______________________________________________________________________________
7. Review questions
Explain the concept of Social class and its Consumer behavior applications.
8. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 3: LESSON 15
1. What is Culture?
6. Measurement of Culture
7. What is Subculture?
8. Review questions
9. Further readings
1. What is Culture?
The study of culture generally requires detailed examination of the character of the total society,
including such factors as language, knowledge, laws, religions, food, customs, music, art,
technology, work patterns, products and other objects that give a society its unique flavor. Culture
is a societys personality.
Culture is defined as the sum total of learned beliefs, values and customs that serve to direct the
behavior, such as adding sugar and milk to coffee, putting ketchup on hamburgers and putting
mustard on frankfurters are customs. Beliefs and values are guides for behavior; customs are
Culture is societys personality. It is values, beliefs, customs, and tastes, produced or practiced by
a group of people. A consumers culture influences his buying decisions. Cultures have their own
rituals, such as weddings and funerals that have specific activities and products associated with
them. Cultural values are deeply held beliefs about right and wrong ways to live. Marketers who
We are exposed to people with different cultural values or customs (as when visiting a different
region or a different country) that we become aware of how culture has shaped our own behavior.
For example, to understand brushing our teeth twice a day with flavored toothpaste is a cultural
experience requires some awareness that members of another society either do not brush their
Culture offers order, direction and guidance in all stages of human problem solving by providing
for example, culture provides standards and rules about when to eat (not between meals),
what is appropriate to eat for breakfast (juice and cereal), lunch (a sandwich), dinner (something
hot, good and healthy), and snacks (something with quick energy). Culture is also associated
with what a societys members consider to be a necessity and what they view as luxury. For
Culture also provides insights as to suitable dress for specific occasions. Dress codes are shifting
dramatically; people are dressing more casually all the time and in most situations. Because most
Americans do not consider soda a suitable breakfast beverage, the real challenge for soft-drink
Cultural beliefs, values and customs continue to be followed as long as they yield satisfaction.
When a specific standard no longer satisfies the members of a society, however, it is modified or
replaced, so that the resulting standard is more in line with current needs and desires.
For children, the process of playing with their toys emphasizes the learning of these acceptable
cultural values and customs. Cultural learning prepares them for later real life circumstances.
There are three different forms of cultural learning, which are as follows:
Formal learning, in which adults and older member teach a young family member how
to behave.
Informal learning, in which a child learns primarily by imitating the behavior of, selected
Technical learning, in which teachers teach the child in an educational environment about
what should be done, how it should be done, and why it should be done.
Product advertisements enhance informal cultural learning by providing the audience with a
The repetition of advertising messages creates and reinforces cultural beliefs and values. Ads for
portable cellular telephone service often stress the convenience of scheduling and rescheduling
appointments, as well as the security of having a phone at all times in case of some emergency.
After several years of increasing publicity to advertising appeals, they have been taught by
marketers to desire them. Such advertising also teaches future generations of consumers to
Culture is part of the external influences that impact the consumer. That is, culture represents
influences that are imposed on the consumer by other individuals. The definition of culture
offered in the text is "That complex whole which includes knowledge, belief, art, morals, custom,
and any other capabilities and habits acquired by man person as a member of society." From this
beliefs are important parts. In the U.S., people know and believe that a person who is skilled and
works hard will get ahead. In other countries, it may be believed that differences in outcome
result more from luck. "Chunking," the name for China in Chinese literally means "The Middle
Kingdom." The belief among ancient Chinese that they were in the center of the universe greatly
Other issues are relevant. Art, for example, may be reflected in the rather arbitrary practice of
wearing ties in some countries and wearing turbans in others. Morality may be exhibited in the
view in the United States that one should not be naked in public. In Japan, on the other hand,
groups of men and women may take steam baths together without perceived as improper. On the
other extreme, women in some Arab countries are not even allowed to reveal their faces. Notice,
by the way, that what at least some countries view as moral may in fact be highly immoral by the
standards of another country. For example, the law that once banned interracial marriages in
South Africa was named the "Immorality Act," even though in most civilized countries this law,
and any degree of explicit racial prejudice, would itself be considered highly immoral.
Culture is comprehensive. This means that all parts must fit together in some logical
fashion. For example, bowing and a strong desire to avoid the loss of face are unified in
the prescribed norms may lead to sanctions, ranging from being hauled off by the police
for indecent exposure to being laughed at by others for wearing a suit at the beach.
Cultures fall somewhere on a continuum between static and dynamic depending on how
quickly they accept change. For example, American culture has changed a great deal
since the 1950s, while the culture of Saudi Arabia has changed much less.
Culture is shared- Various social institutions within a society transmit the elements of
culture and make the sharing of culture a reality. Chief among such institutions is the
family, which serves as the primary agent for enculturation (learning own culture) the
passing along of basic cultural beliefs, values and customs to societys newest members.
In addition to the family, two other institutions traditionally share much of the
responsibility for the transfer of selected aspects of culture: educational institutions and
houses of worship. A fourth, frequently overlooked, social institution that plays a major
It should be noted that there is a tendency of outsiders to a culture to overstate the similarity of
Culture could be influenced by values, norms, beliefs, customs and conventions. Values are often
greatly associated with age groups because people within an age-group have shared experiences.
For example, it is believed that people old enough to have experienced the American Depression
are more frugal because of that experience. Regional influences are also very significant. India
important concept for marketers who plan to sell their products in foreign or
multinational markets
Without a common language, shared meaning could not exist and true communication would
not take place. Verbal symbols may include a television announcement or an advertisement in
a magazine. Nonverbal communication includes the use of such symbols as figures, colors,
shapes and even textures to lend additional meaning to print or broadcast advertisements.
Any word is symbol. Price and channels of distribution also are significant symbols of the
marketer and the marketers product. For example, price often implies quality to potential
buyers. For certain products (such as clothing), the type of store in which the product is sold
also is an important symbol of quality. In fact, all the elements of the marketing mix the
product, its promotion, price and the stores at which it is available are symbols that
Ritual:
A ritual is a type of symbolic activity consisting of series of steps occurring in a fixed sequence
and repeated over time (such as singing the national anthem during the assembly in the school or
before the football match). For example, tree ornaments; stockings and various food items are
Values are enduring beliefs about things that are important. They are learned through the
processes of socialization and acculturation. Our values exist in an organized value system, with
some values being viewed as more important than others. Some are regarded as terminal values
and reflect desired end states that guide behavior across many different situations. Instrumental
values are those needed to achieve these desired end states. Domain-specific values are those that
are relevant within a given sphere of activity. Western cultures tend to place a relatively high
value on material goods, youth, the home, family and children, work and play, health, hedonism,
and technology.
Norms are the rules that designate forms of acceptable and unacceptable behavior. For instance,
the norm for marriage is above 18 years of age in most of the civilized cultures. Customs are
behaviors that lasted over time and passed down in the family setting. For instance, it is a custom
in Indian culture to greet others while meeting. Conventions are practices tied to the conduct of
6. Measurement of Culture
Since we have realized by now that culture is multifaceted, we also need to measure it. Certain
techniques, which are popularly used to measure culture, are given below.
Projective techniques: These tests as we have studied earlier are helpful in assessing
Attitude measurement tests: These tests are useful in determining beliefs and attitudes.
Depth interviews and group discussions: These methods can be used to discover the
Observation: Through this method it is possible to gain valuable insights into the more
Content analysis: Content analysis focuses on the content of verbal, written, and pictorial
communications like the copy or art composition of the ad itself. This technique uses an
analysis of past and present media to know the culture changes. This analysis can be
7. What is Subculture?
Subculture is a distinct cultural group which exists as an identifiable segment within a larger,
more complex society. Subculture refers to a culture within a culture. Alternatively, a sub-culture
is an identifiable distinct, cultural group, which, while following the dominant cultural values of
the overall society also has its own belief, values and customs that set them apart from other
members of the same society. For example, African Americans are, as indicated in the group
name, Americans; however, a special influence of the African American community is often also
present. For example, although this does not apply to everyone, African Americans tend to
worship in churches that have predominantly African American membership, and church is often
a significant part of family life. An Indian example of Subculture may include South Indian
Christians.
Different perspectives on the diversity in U.S. culture exist. The "melting pot" metaphor suggests
that immigrants gradually assimilate after they arrive. Therefore, in the long run, there will be
few differences between ethnic groups and instead, one mainstream culture that incorporates
elements from each will result. The "salad bowl" metaphor, in contrast, suggests that although
ethnic groups will interact as a whole (through the whole mix of salad) and contains some
elements of the whole (through the dressing); each group will maintain its own significant traits
(each vegetable is different from the others). The "melting pot" view suggests that one should
run integrated promotions aimed at all groups; the "salad bowl" approach suggests that each
Subculture Subculture
Subculture
Subcultures can be classified on the basis of ethnic classification (e.g. Blacks, Hispanics, Asian
subcultures and age subcultures Subculture is often categorized on the basis of demographics.
Thus, for example, we have the "teenage" subculture and the "Cuban-American" subculture.
While part of the overall culture, these groups often have distinguishing characteristics. An
important consequence is that a person who is part of two subcultures may experience some
conflict. For example, teenage Native Americans experience a conflict between the mainstream
8. Review questions
Explain the concept of Culture and its relation with Consumer behavior.
________________________________________________________________________
9. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden Press,
Chicago, 1990
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
________________________________________________________________________
UNIT 4: LESSON 16
______________________________________________________________________________
1. Introduction
8. Limitations of Models
9. Types of Models
______________________________________________________________________________
1. Introduction
A particularly significant development in consumer behavior research has been the emergence of
Models. Buyer Behavior models are useful for marketers because they map out influences that
could effect the purchase behavior of a consumer. Once these influences have been identified,
more accurate marketing strategy programs can be developed based on a consumer approach.
integrative models hold promise for adequate empirical analysis of consumer behavior problems
usually involving complex, multivariate phenomena. Consumer behavior model is anything used
to represent all or a part of the variables of consumer behavior, and it provides several significant
The model can be used as a device for experimentation or a device for a communication, because
a model is a replica of the phenomena. As such, it provides a testable map of reality, and its utility
lies in the extent to which the model makes possible a successful prediction of resulting behavior.
knowledge about a consumers purchase and their behavior through a transformation process.
It provides the framework for including various concepts like learning, perception,
The input section describes the business and environmental factors, including family reference
groups and social class. The most significant stimulus affecting the buying behavior is the
information cues about the characteristics of the product. These cues may be significative if it
comes to the buyer from the product itself when he is involved in a shopping activity. A similar
set of cues, which are symbolic in nature, may also act as information sources. Both these
significative and symbolic information cues represent the firms marketing efforts. The broad or
product characteristics acting as information cues are quality, price, distinctiveness, service and
availability. There are impersonal sources like mass media communications and advertising, over
which the firm has no control. However, the information sources also include sales and service
personnel who can add and help the marketing efforts of the firm. The third source is social
information cues which could affect buying behavior towards the product or brand and these
include family, friends or other members of the group with whom buyer comes into contact or to
which he aspires to be in. The social source is personal and the company marketer has no control
The model goes onto explain how the inputs/influences are evaluated and used by the consumer
through Perceptual Constructs and Learning Constructs. Perceptual Constructs refer to all the
complex states or psychological processes (perception) and how the individual deals with the
information cues received from various sources. It can be seen that all information available is not
attended to (attention) and may not always be crystal clear in its meanings (ambiguity). Although
the individual may be engaged in an overt search for information, sometimes he/she may be
bombarded with unwanted information. Learning Constructs are more complex and numerous.
Motives refers to the goals the individual attempts to achieve through his/her buying behavior.
These goals are derived from the various drives (needs), which may be acting as a cue for his/her
motive.
Finally, the eventual outputs and outcomes of the process are identified. The purchase decision is
the output. If after using the product, the consumer is satisfied with it, this will reinforce his
positive attitude and purchase intent about the product and brand. Also, the positive attitude
makes the consumer more attentive to the product/brands stimuli and further increases his brand
comprehension. If the consumer is dissatisfied with experience of using the product/brand, it will
trigger off a reaction of negative attitude, low attention to the product stimuli. Poor brand
The Howard-Sheth Model is appreciated for its contribution to repeat purchase behavior. The
model illustrates that not all product purchase decisions are first time purchases. This factor shall
influence the amount of information search, which will be undertaken by the consumer. Further,
the model also explains various environmental influences, which affect the decision making
process. The Howard-Sheth Model is thus particularly useful in gaining an understanding of how
This model, however, does not predict purchase behavior. It merely maps out the
influences that may affect consumer behavior, which can then be used as a frame of
reference.
Further, it is also not clear whether the needs of the consumer will have any effect on the
______________________________________________________________________________
Over time more comprehensives models have been proposed. One of the earliest decision making
models is the 1966 Nicosia Model. The aim of the model was to demonstrate how the company
In Nicosia Model, consumer behavior is represented as a series of decisions, which follow each
other. The model is a circular process between an organization and the consumer. It analyses
consumer decisions through four fields: message exposure, information search and evaluation,
purchase, and feedback. Accordingly, the model is split into four key fields:
The model attempted to demonstrate how the company influences the consumer through its
promotional and advertising activities. This model is monadic; therefore, general attitudes may be
However, criticisms have been raised about this model, include its descriptive content, its brevity,
and the fact that it has never been fully tested and is now considered historical. The model lacks
the inclusion of social and family influences and only takes into consideration the decisions made
solely by the individual. This may prove to be misleading as many consumer purchasing
decisions are probably more accurately seen as collective decisions in that they are influenced by
many others, not just immediate family or peer members, and in many subtle ways. This model
also lacks information about predictability. The model tends to focus on durable products rather
than impulse or routine purchases. Lengthy purchase cycles mentioned in the model will be
appropriate for infrequently bought durable products. Shorter cycles, such as impulse purchases,
grocery products and personal care items will not benefit as much from this model
Engel, Blackwell and Miniard Model (1995) argues that consumer decision making process is a
flow of sequential activities, which involve need recognition, search for information, information
alternative evaluation and divestment. These activities will be influenced by three different
processes. An overview of the decision making process, as well as of the influencing factors is
presented as below:
Need Recognition: Need recognition is the first step in the consumer decision making
process. A need exists when the consumer experiences his current status to be different
from how he would want it to be. The main concern in this stage is that the difference
between desired and actual state must be large enough for the individual to recognize the
need. Before a consumer will know that he has a need, certain factors must be in place to
trigger the need. Time is the first important factor. Changed circumstances are the second
factor. For instance, a divorced woman may become aware of the need to save for
retirement at a younger age. Product acquisition, the third factor, states that when the
single woman purchases a will, her broker may point out that she needs extra life cover
Search for information: After the individual has recognized the need, he will search for
information from memory. If the information from memory is not enough, the individual
will turn to external sources. Individual and environmental influences may affect the
external search.
Information processing: When an individual receives the information, a five step process
is followed to process the information. The process described the model includes the
following:
Attention The consumer will pay attention to the message, if he finds the
message useful
stored in memory
Acceptance At this stage, the individual may have changed his opinion about
Pre-purchase alternative evaluation: After the information has been processed, the next
step in the consumer decision making process is to evaluate the different alternatives
which were provided. When buying a product, consumers compare what they know about
different products to what they consider important. Consumer will select new and pre-
existing evaluations from memory and will also monitor attributes of the product or
service. The different alternatives available will vary in the way in which they are
decision making, alternative evaluation will flow from belief formation to affect
Purchase: The process involves the consumer in buying the product. The consumer
finalizes his choice of retailer from the alternatives, which were investigated.
Subsequently, a specific person with whom to deal in the store is selected and other
consumer has made his product choice and consumed it, it will be important to determine
whether the consumers standards have been met. If this is the case, satisfaction will be
the outcome. It is important for consumer satisfaction to be the end result, because
satisfaction will lead to repeat purchases of the product. The level of satisfaction
perceived by the consumer shall depend upon (a) his perception about the level of
performance may vary from the actual level of performance (b) his attitude and frame of
mind and (c) diversity in comparison standards. After the product has been consumed and
a satisfied or dissatisfied customer has been produced, the product needs to be divested.
Influencing factors: The decision making of the individual shall be influenced by three
social class, family and situation. Lastly, psychological processes involve information
Engel, Blackwell and Miniard Model is a practical model that can be applied to different research
The model makes provision for repeat purchase situations, by acknowledging that
The model differentiates between low and high involvement decision making.
The model also included emotional processes like need recognition and motivational
component.
The model acknowledges different form of lifestyles, personalities and values and thus
takes into account various situations that may affect consumer behavior.
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Philip Kotler describes the Basic Decision Making Model as having following five stages:
Need recognition,
Information search,
Evaluation of alternatives,
This model is a logical way of evaluating the consumer buying process by looking at the entire
buying process rather than just the purchase in order to understand why a consumer may make a
purchase and why they become (dis)loyal. Although not all steps are relevant, especially to
impulse and routine purchases, the stages show all of the factors a consumer may have to deal
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6. Similarities among the Models
behavioral change
All emphasize the process by which attitudinal change take place, and, as
All contains, directly or indirectly, the same three variables. These variables are
All is similar in its tendency to consider the individual as the central component
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Dissimilarities between models revolve around the particular manner of treating the major
variables. These differences can be summarized as the emphasis given to each variable in specific
models, the factors included under each major variable, and the relationships that exist between
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8. Limitations of Models
None of the models does a satisfactory job of dealing with motives or drives.
None of the models appear to take into account the notion that the typical consumer has a
It has not been as popular with marketers, as with economists, to spell out clearly the
None of the models has yet stood the test of time and empirical investigation
All the models are primarily experimental tools designed to aid in the identification of
hypothesis and the development of theory. This is their virtue and their principal
problem. Although these integrative models were constructed by centering on the concept
of attitude, it did not satisfactorily deal, nor take into account the multidimensionality of
model of consumer behavior, which is able to understand, explain, predict and control
consumer behavior more completely. To develop a more complete and integrative consumer
behavior which can integrate the multidimensionality of attitudes, it is suggested that the
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Monadic models- Monadic models are simplified models, which tend to create unrealistic
and uneven views towards buyer behavior. Although they are not complex enough for
the in-depth analysis of buyer behavior, they are helpful in creating a basic and general
foundation for the understanding of consumers. Some examples of monadic models are
the Nicosia Model 1966 (Dubois 2000), Basic Decision-Making Model (Kotler 1999),
Multi-variable models- Multi-variable models are more complex and include the
relationships between external and internal influences that may affect the purchase
behavior of a consumer. Lunn described these models as following the eclectic approach,
These models will be more representative of the true characteristics of buyer behavior,
although not as easily analyzed. Such models are the Engel, Kollat Blackwell Model
1978 (Dubois 2000), the Howard-Sheth Model (1969), and the Howard-Ostlund Model
______________________________________________________________________________
______________________________________________________________________________
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 4: LESSON 17
1. Introduction
4. Purchase patterns
9. Review questions
1. Introduction
Webster and Wind define Organizational Buying as the decision making process by which
formal organizations establish the need for purchased products and services and identify,
The term organizational buying reflects purchasing in three different buying situations-
Industrial buying, Buying for resale and Institutional buying. Industrial buying and
organization buying tend to be used interchangeably in the literature, but as we can see,
The process of organizational buying behavior differs from consumer buying. The difference
lies in the goals behind purchasing. Organizational goals are concerned with production of
goods or service, or their resale and all purchases are hence made to effectively perform the
organizational activities.
The principal similarity between consumer and organizational purchasing is that they both
represent a need satisfying process. This need reflects itself in buying behavior, and this is
why it is important that marketers understand purchasing motives in order to target their
It can be seen that organizational purchasers have to work with more stringent purchasing
constraints, because they have the commercial and budgetary interests of their respective
organizations to serve. They also have logistical factors like delivery schedules to maintain.
There is little opportunity for impulse purchasing in which everyday consumers can
indulge. As purchasing professionals they should have a great deal of technical and
The term organizational buyer refers to not only the business firms but also includes the
financial firms like banks and social organizations like Red cross, family planning foundation
etc.
same geographical area, as opposed to household buyers spread all over the country.
For example, all leading automobile firms setup there manufacturing plants in the
Size of the Buyers: The organizational buyers are few but are much larger and they
purchase in bulk. The household buyers are relatively much smaller and their
purchases are small. Retail buying is common in the household segment. Generally
even in the case of small organizational buyer, the annual purchase budget will run
into several lakhs of rupees, but in case of large household purchases it will never
Risk in Purchases: The risks in organizational purchases are much higher than in
household purchases. The organizational buyer always looks for alternatives that will
help him to reduce these risks. Previous experiences with the supplier, vendor image,
suppliers standing within the industry are some of the factors that help the
Derived demand: The demand for business goods is ultimately derived from the
demand for consumer goods. For this reason the business marketer must closely
monitor buying patters of ultimate consumers. For instance, in India the entire
industry depends on the rainfall and the crop situation. If the agriculture industry is
down, the entire industry is hit. Since consumers postpone or reduce buying
Inelastic Demand: The total demand for many business goods and services is
inelastic that is not much affected by price changes. Total industry demand for goods
and supplies that they use remains relatively unaffected by changes in the prices in
the short run, unlike consumer demand that is very elastic to price changes. Shoe
manufacturers are not going to buy much more leather if the price of leather falls, nor
will they buy much less leather if the price rises, unless they can find satisfactory
substitutes. Demand is especially inelastic in the short run because producers cannot
Organization Purchase decisions are joint: Since the costs and risks involved in
organizational purchases are high, these decisions are taken jointly and involve
several individuals. The reason is to use the expertise of various individuals in their
respective fields. Also, in some cases two products have joint demand in the market
place in the sense that the sale of one is dependent on the sale of the other. So, they
Fluctuating Demand: The demand for business goods and services tends to be more
volatile than the demand for consumer goods and services. Also, the organizational
demand for goods is dependent on the business cycle the industry is experiencing.
agents, who must follow their organizations purchasing policies, constrains and
proposals and purchase contracts are not typically found in consumer buying.
Group based decision making- The organizational purchase decisions are joint
the decision-making unit. They have a common goal and share the risks arising
out of the decision. These individuals may or may not be a part of the buying
organization, but plays a key role in the decision making process. Also these
by the customer. Within the organization, the actual user plays the
iii. Decider: Decider is the person who actually takes the decision to buy.
The decider will invariably consider both the technical and economic
iv. Buyer: Buyer is the person who actually buys on the behalf of the
buyers, the most critical factor is on-time delivery as he does not want to
organization.
make purchases in Government departments and big industries and they are very
knowledgeable. This means that sellers need to know their products in depth and
product and services rather than depending upon the sales people.
emotional sentiments involved. Such buying decisions are based on the concept
of value for money in terms of utilitarian needs. The organizational buyer today
possible service and remain continuously focused towards the customers. These
But it is also true that organizational buyers are humans too. They also are influenced
4. Purchase patterns
The purchase patterns and buying approach of organizational buying is different from that of
Complexity- the organizational purchases are more technical and complex than
more formality involved in the buying process. The marketer has to formally
approach the buyer or the decision making unit with a formal sales presentation.
At the time of entering into the buying transaction, there are lot of contracts
laying the terms and conditions of the agreement. Also, in case of purchases by
Government departments, there is use of tenders which is again a very systematic
No frequent purchases- business buyers are less frequent purchasers than the
consumers. They may buy long term and fixed products which would last for
economic and business cycles around. In case of economic slowdown, the buyers
Services- services accompanied with the offering are often a major part of
training to operate and supplies of spare parts are very useful in selecting the
vendor. Sometimes these are customized to suit the needs of the buyer.
and they buy in bulk, there is a lot of negotiation game played between buying
reciprocal agreements with each other wherein they can buy products from each
other.
Direct buying- unlike consumer buying from the retailers, the business buyers
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5. Factors affecting Organizational buying
belief structure regarding the organization and its working. Such internal
For example, most Indian family owned firms have a centralized structure where
purchases decisions often require the familys consent. This can delay purchases
and sometimes even affect the firms capability to compete in the market. As
technology change and the value of money. For example if the buyer perceives
that the government is likely to increase taxation, which will increase the price of
a crucial input, the buyer may not resort to buying more material and holding its
stock.
decision involving the individual that matters. It is important that the marketer
has the complete personal details of all individuals who are involved in the
decision process. For personal factors like age, income, education, job position
etc. are likely to affect individual perception, motivation and preference. For
example, a sales person could not get an order from a buyer who was old simply
because the latter perceived him to be the usual youngster who did not
understand responsibility. The old buyer found it difficult to accept that a young
boy could explain him the technical detail of computers and networks. Since the
buying organization was a very important one, he reported this problem to the
marketing manager, who then called on that buyer along with the young
salesperson. The manager asked the young sales person to do the presentation
and thereafter negotiate the deal with the buyer. They got the order because the
buyer could emotionally relate himself better to the old and reasoned
gentleman than the young, smart. It is therefore important that the marketer be
with different formal authority, status and persuasiveness. The marketer needs to
know who exerts the maximum authority and is able to persuade others to agree
with his viewpoint. Knowledge of group dynamics helps the marketer evolve his
Size of the firm: large organizations have different departments like marketing,
purchase, technical; IT etc. in case of smaller firms there may not be such a
bifurcation. It can also be a case of a sloe proprietorship. So, based on the size of
the firm and the number of persons involved in the buying decision process, the
objectives with which they are operating. Some are Government departments,
differs. So, the marketer has to understand the nature and act accordingly.
Location of firm: the location of the firm has a great impact on the nature of
organization and its processes to a great extent. Such a difference can be seen in
Technology: it may influence both what is bought and how it is bought. Some big
computers and quantitative techniques. The marketer must be fully aware about
Organizational values: derived from the organization culture these values have a
whereas others are not. Such a value system would affect the marketer as he
any buying situation it involves humans and their perception; their emotions and
routine least risky simple decisions on one hand to new, complex and risky decisions on the
other. In case of organizations there are three such purchase situations. These are:
choice once the inventory levels fall below optimum. The organizations have a
vendor lists who acts like regular suppliers for the organization. The terms and
conditions are settled once and thereafter the same gets applied automatically to
each single subsequent purchase unless the conditions are modified. These are
least risky and involve least efforts. This typical routine purchase process
such is required. It poses a difficult situation for new buyers to enter the market
is somewhat higher than the straight re-buy situation. The uncertainty is involved
because the buyer wants to repurchase the good but with some modifications. In
this situation the competing suppliers can try to influence the buyer with their
offerings. The decision involves information search which is not very extensive
New task- the decision making is extensive because of the new nature of the
purchase. Here the item is being purchased for the first time for a new problem at
hand. It is the most complex of buying situations and involves highest risk and
vendor specifications; procedures and terms and conditions for future purchases.
alternatives. This is a very significant purchase situation for the suppliers as this
These are the buying centers. These are formed of individuals within an organization who
interacts during the purchase decision making process. Its size varies according to the
purchase situation, complexity of the process and structure of the organization. In case the
purchase decision is very complex and involves different departments, the employees from
different departments are involved in a form of a decision making unit for the process.
Different members of the decision making unit is concerned with different functions and
These are:
the gap between the desired state and the existing one. This identification may be
may force the managers to abandon existing old machinery. Internal factor such
need to find its solution. This requires specifying the requirement in terms of
Search of alternatives for Product and vendor- after the specifications are in
place, the search for the vendor having the required product starts. To collect
external and internal sources. The buyer ends up with a list of vendors having
desired products.
Evaluate the alternatives against the criteria- the list of the vendors and the
criteria that are used for evaluating the vendor. It may include- prices, service,
delivery conditions and credit facility available. Other important factors include-
the reputation of the vendor, his previous buyers, his experience, training support
offered by the vendor in case of a complex purchase situation like New task.
Selection of product and vendor after due evaluation, the vendor with the
required product offering is selected. This is followed by clearly laying down the
terms and conditions like payment modes, delivery dates etc regarding the
purchase.
of what was promised and what and how it is being delivered; and the product
performance. This acts as a source of feedback for the buyers. The major part of
He contended that it is critical for marketers to locate powerful buyers, because they
tend to have more direct say in purchasing decisions at the negotiation stage. This
does not ultimately mean those who are most important within the organization at
which the marketing approach is being directed. Buyers of relatively low status may
be able to impede a purchase for a variety of reasons. Five power bases have been
compliance.
expertise
in a company.
Nowadays, the emerging process of buying is the Just in time with virtually zero stock
holding. In this system, the industrial buyer places an order with the supplier as and when the
demand arises. Thus, reliability of supply is of prime importance and in such situations,
___________________________________________________________________________
9. Review questions
______________________________________________________________________________
10. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
___________________________________________________________________________
UNIT 5: LESSON 18
1. Introduction
4. Review questions
5. Further readings
1. Introduction
India is such a diverse nation. Various segments of the Indian consuming public differ from each
other significantly. If so much diversity exists among segments of a single society, then even
more diversity is likely to exist among the members of two or more societies. To succeed,
international marketers must understand the nature and extent of differences between the
consumers of different societies cross cultural differences so that they can develop effective
Cross-cultural marketing is defined as the effort to determine to what extent the consumers of
two or more nations are similar or different. This will facilitate marketers to understand the
psychological, social and cultural aspects of foreign consumers they wish to target, so as to
design effective marketing strategies for each of the specific national markets involved.
A company can enter a foreign market as a domestic exporter, foreign importer or a foreign
government-solicit the firm to sell abroad. Its objectives could be to determine how consumers in
two or more societies are similar / different and devise suitable, appropriate strategies or to devise
individualized marketing strategy if cultural beliefs, values and customs of a specific country are
different.
Differences in the criteria for evaluating products and services: Apparel firms in India
believe that that the quality of the fabric determines the quality of the garment whereas,
the Japanese think that every aspect of the garment from sewing to packaging decides
quality.
Differences in the economic and cultural social condition and family structure: Social
relation to
has to select the customers/ market not on the basis of the superficial similarities of age or
income, but by using the real motivating factors that prompt them to accept or reject
products. McDonald has to change its global product portfolio after entry into India (e.g.
Problems related to pricing: the marketer has to adjust his pricing policies according to
Cross-cultural consumer analysis can be defined as the effort to determine to what extent the
consumers of two or more nations are similar or different. Such analysis can provide marketers
with an understanding of the psychological, social, and cultural characteristics of the foreign
consumers they wish to target, so that they can design effective marketing strategies for the
specific national markets involved. In a broader sense, cross cultural consumer analysis shall also
include a comparison of sub cultural groups within a single country (e.g. South Indians and North
Indians).
more societies are similar and how they are different. For example, the following table presents
differences between two predominant cultures of the world (Japanese and American Cultural
Traits)
Homogenous Diverse
Ambiguous Clear-cut
General Specific
likely to be influenced by how similar the beliefs, values and customs are that govern the use of
the product in the various countries. For example, the worldwide TV commercials of major
international airlines tend to depict the luxury and pampering offered in their business class and
product is being liked by local or domestic consumers, then it will be liked globally as well. Ths
biased viewpoint increases the likelihood of marketing failures abroad. It reflects a lack of
distinctively different cultures. To overcome such narrow and culturally myopic view, marketers
must also go through a kind of acculturation process. They must learn everything that is relevant
about the usage of potential usage of their products and product categories in the foreign
Cross cultural acculturation is a twin process for marketers. Firstly, marketers must thoroughly
orient themselves to the values, beliefs and customs of the new society to appropriately position
and market their products (being sensitive to and consistent with traditional or prevailing attitudes
and values). Secondly, to gain acceptance for a culturally new product in a foreign society, they
must develop a strategy that encourages members of the society to modify or even break with
their traditions (to change their attitudes and possibly alter their behavior). For instance, Colgate
started promoting its toothpaste and toothbrush in rural areas by educating customers about
Cross cultural consumer research also plays significant role in cross-cultural consumer analysis.
Research methods may also need to be re-examined. Researchers must familiarize themselves
with the availability of research services in the countries they evaluate as potential markets and
must learn how to design marketing research studies that will yield useful data. Researchers must
also keep in mind that cultural differences may make the standard research methodologies
inappropriate.
3. Alternative Multinational Strategies
Some of us may argue as markets are becoming more and more similar, standardized marketing
strategies are becoming more and more feasible. But, some more would argue back that
differences between consumers of various nations are far too great to permit a standardized
marketing strategy. Thus, practically speaking, we need to work out whether to use shared needs
Shared needs and values would mean to appeal to consumers in different countries in terms of
their common needs, values, and goals. Using national borders as a segmentation strategy, on the
other hand, would mean to use relatively different local or specific marketing strategies for
A lot of companies have created world brand products that are manufactured, packaged, and
positioned in exactly the same way regardless of the country in which they are sold. For instance,
In contrast to the above, some other organizations imbibe a strategy that adapts their advertising
messages to the specific values of particular cultures. A very good example here would be that of
McDonalds, which tries to localize its advertising to consumers in each of the cross-cultural
Multinational marketers face the challenge of creating marketing and advertising programs
marketing. The continuum prescribes five stages that range from mere awareness of a foreign
Factors Description
locally available.
or localize its communication program. Thus, following four possibilities may emerge as
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4. Review questions
______________________________________________________________________________
5. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden Press,
Chicago, 1990
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 5: LESSON 19
CONSUMER RESEARCH
5. Review questions
6. Further readings
1. Introduction
Consumer Research is the systematic collection of and analysis of consumer information for the
applied sociology that concentrates on understanding the behaviors, whims and preferences, of
introduce a unique new food processor. Consumer research would be conducted to learn people's
feelings about cooking and the use of food processors, along with their desires for and their
knowledge of the product, including any negative attitudes. Using this information, an advertising
campaign can be tailored to the needs of the prospective purchasers of the product. The research
will also identify the best prospects and the media they use, giving the company an idea of where
to place advertising to best reach their target audience. The field of consumer marketing research
as a statistical science was pioneered by Arthur Nielsen with the founding of the AC Nielsen
Company in 1923.
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2. Why to do consumer research?
Consumer research is a very useful tool for marketers because of the following reasons:
It is an important tool to study buyer behavior, change in consumer life styles and
It is used to study competition and analyze the competitors product positioning and to
Due to liberalization and globalization the competition has intensified and survival of an
organization is at stake. The aim is now to gain and retain competitive advantage and
consumer research plays an important role over here. Realizing this contribution more
______________________________________________________________________________
3. Types of consumer research- there are two paradigms of consumer research. These are:
and enables the marketers to predict consumer behavior based on research methods such
as experiments, survey techniques and observation. The findings from this type of
research are descriptive, empirical and generalizable. It has roots in both the positivist
view of the world, and the modern marketing viewpoint that marketing is an interactive
process in which both the buyer and seller reach a satisfying agreement. Positivism
indicates the research approach that regards consumer behavior discipline as an applied
marketing science which is primarily concerned with predicting consumer behavior. Both
descriptive and inferential statistical techniques can be used to analyze data and draw
to ten million, and may include hypotheses, random sampling techniques to enable
inference from the sample to the population. The objective of quantitative research is to
develop and employ mathematical models, theories and hypotheses pertaining to natural
reasons that govern human behavior. It investigates the why and how of decision making,
as compared to what, where, and when of quantitative research. Hence, the need is for
smaller but focused samples rather than large random samples, which qualitative research
categorizes data into patterns as the primary basis for organizing and reporting results.
They are used to define a problem, generate hypotheses, identify determinants, and
develop quantitative research designs. They are expensive and slow. Because of the low
generalize to the whole population. They are however, very valuable for exploring an
issue and are used by almost all researchers. They can be better than quantitative research
at probing below the surface for affective drives and subconscious motivations. Unlike
philosophical stances that are taken in relation by the research to each phenomenon. Main
types of qualitative research methods are- in depth interviews, focus groups and
modernist approach to the study of consumer behavior that focuses on the act of
consuming rather than the act of buying. Their aim is to understand consumer
consumption practices.
is better if both the methodologies are combined so that the weakness of one can be
______________________________________________________________________________
Defining the objectives of the research- every research is based on the problem or
information need. At this point, the problem will have been recognized by at least one
level of management, and internal discussions will have taken place. Sometimes, further
definition of the issue or problem is needed, and for that there are several tools you can
use. Once your problem is better defined, you can move onto developing your approach,
which will generally be around a defined set of objectives. Developing your approach
should consist of honestly assessing you and your teams market research skills,
information has been clearly defined, the researcher must specify the objectives of the
proposed research and develop a specific list of information needs. Research objectives
answer the question "Why is this project being conducted?" The answer could be broad
or specific. Only when the researcher knows the problem that management wants to solve
can the research project be designed to provide the pertinent information. The difficult
part of establishing research objectives is the conflict that often exists between the value
of information and the research budget. Since each piece of information has some cost
associated with it, whether it is the cost of the account manager's travel expenses or the
cost of having an outside agency performs a telephone survey, each piece must be
evaluated in terms of its value with respect to the needed decision. So, identifying the
Collecting and evaluating secondary data- Secondary Data is data collected for some
purpose other than solving the current problem at hand. Locating secondary data is called
Secondary research. It may provide direction for designing primary research which is
the data sources for the research project, an assessment must first be made of the amount
and type of data presently available. There are two types of secondary data:
Internal (data originating within the firm)- it includes data such as sales and cost
data
External (published data originating outside the firm) - it includes data from the
information is needed, a quantitative design is used as against the qualitative one in case
the type of information to be collected, the sources of the data, and the data-
i. Data collection methods- there are three basic ways of collecting data.
These are:
observations.
of the phenomena.
respondents or mailed to them, but in all cases they are returned to the researcher via mail. The
problem of low response rate can be taken care of by forming a mail panel, which is a
respondents are directed to the marketers website by computer advertisements or home pages.
they are either interviewed on the spot, taken to a room and interviewed, or taken to a room and
ii. Data collection instruments- Data collection instruments are tools used to
collect data. 1. There are a few general ways to collect data. You can
either observe what happens (using any of your senses to collect data),
you can ask other people, or you can review documents. Getting data
interview. You are asking people either to write down their responses or
administered and the results are also same, it is said to have a Split half
tabulate and analyze but provide more information than the surveyor
disagreement.
Attitude scales- A method of measuring attitudes based on the
about the topic of interest and the respondent states his or her degree
response to a statement.
the study and the type of data needed. The components are:
method is that the interviewer can introduce bias into the process
successfully.
other test concepts that are the subject of the focus group. In
sessions are almost always audio aped and many are videotaped,
client company representatives usually like to observe their focus
undesirable associations.
respondents.
music, pictures to express what they feel. So, they use metaphors
probing.
ii. Sampling- Sampling is that part of statistical practice concerned with the
(sampling unit), how many to survey (sample size) and how to select
being selected.
to interview.
classroom)
and is dependent on both the size of the budget and on the degree
recording non-responses.
Data collection- qualitative study requires highly qualified people to collect data. A
Analyzing the data- After the data are collected, the processing begins, which includes
the functions of editing and coding. Editing involves reviewing the data forms to ensure
responses or groups of responses so that numerals can be used to represent the categories.
Later, all the responses are tabulated and analyzed using sophisticated analytical
programs such as SPSS (Statistical package for social sciences). It is important that the
data analysis be consistent with the requirements of the information needs identified
Preparing a report on the findings-After the data have been collected and analyzed, the
final aspect of the research project can be generatedthe development of the appropriate
conclusions and recommendations. This is the most important part of the project. The
research results are typically communicated to the manager through a written report and
oral presentation. The research findings should be presented in a clear, simple format and
___________________________________________________________________________
5. Review questions
______________________________________________________________________________
6. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Assael, H., Consumer Behavior and Marketing Action; South Western Publishing Co.,
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
______________________________________________________________________________
UNIT 5: LESSON 20
DIFFUSION OF INNOVATIONS
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1. Introduction
5. Review questions
6. Further readings
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new product.
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innovation (a new product, new service, new idea or new practice) is spread by
a. Innovation- Various approaches which have been taken to define a new product
product itself and on the effects these features are likely to have on
are:
product, rather than a new product and has the least disruptive
computer software.
players.
of how much exposure consumers have to the new product. Two market
innovation.
characteristics are:
c. Social system- The diffusion of a new product usually takes place in a social
market segment and target segment may be more relevant than the term social
cultural environment to which people belong and within which they function. For
a new cosmetic, the social system is the women in that locality. The social
system acts as a boundary within which the diffusion of the new product is
examined. The orientation of a social system, with its special values or norms is
is modern, the acceptance of innovations is likely to be high and vice versa. The
d. Time- Time pervades the study of diffusion in three distinct but interrelated
ways:
i. Purchase time- Purchase time refers to the amount of time that elapses
ii. Awareness of a new product or service and the point at which they
1. Innovators- these are the venturesome lot who are very eager to
3. Early majority-they are the ones who adopt new ideas just prior
4. Late majority-they are the ones who adopt the new ideas just
approached cautiously.
Adopter categories are generally depicted as taking on the characteristics of a normal distribution
i.e., a bell-shaped curve that describes the total population that ultimately adopts a product.
iv. Rate of adoption-The rate of adoption is concerned with how long it
who will ultimately adopt it. Marketers desire a rapid rate of product
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3. The adoption process- The focus of this process is the stages through which an individual
consumer passes although arriving at a decision to try or not to try or to continue using or
information search.
Explanation of the important stages is given below:
b. Interest-it marks the consumers interest in the product and beginning of the
search for additional information. Example- the person seeks more information
c. Evaluation-in this stage the consumer decides whether or not to believe that this
product or service will satisfy the need. It is called a Mental trial. Example- on
talking to a friend the person decides that the mobile phone should have a good
quality camera in it. The Samsung model under consideration satisfies his need
d. Trial-the consumer actually uses the product on a limited basis. Example- the
person buys the mobile phone under a 10 days full refund policy.
e. Adoption (rejection)-based on the trial above, the consumer decides to use the
product on a full scale (if trial was favorable) or decides to reject it (if trial is
unfavorable). Example- the person finds the mobile phone very good and keeps
it.
f. Need awareness stage and post adoption or post purchase evaluation stages have
also been included in the modified and enhanced model of The Adoption
Process
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4. The profile of the consumer innovator- Consumer innovators can be defined as the
relatively small group of consumers who are the earliest purchasers of a new product.
The problem with this definition is the concept earliest. Innovators are defined as the
first 2.5 percent of the social system to adopt an innovation. In many marketing diffusion
studies, however, the definition of the consumer innovator has been derived from the
status of the new product under investigation. Other researchers have defined innovators
in terms of their innovativeness, that is, their purchase of some minimum number of new
those who purchase none or only one of the new fashion products. Characteristics of
a. Interests in the product category- Consumer innovators are much more interested
than either later adopters or non-adopters in the product categories that they are
among the first to purchase. Consumer innovators are more likely than non-
of informal and mass media sources. They are more likely to give greater
deliberation to the purchase of new products or services in their areas of interest
than non-innovators.
consumers with information and advice about new products. Those who receive
such advice frequently follow it. The consumer innovator often influences the
a new product and encourage others to try it, the product is likely to receive
influence the rate of acceptance or rejection of a new product, they influence its
ways:
are low risk perceivers; that is, they experience little fear of
fewer brands loyal; they are more apt to switch brands. Consumer
innovators are more likely to be deal-prone, i.e. they are more likely to
take advantage of special promotion efforts such as free samples etc.
across such widely diverse areas of consumption as fashion clothing and new
innovators are also less likely to watch television than non innovators. Studies
mass media, such as radio and newspapers, have been too few, and the results
socially involved than non innovators. This greater social acceptance and
either later adopters or non innovators. Probably because many of the products
incomes, and are more likely to have higher occupational status (to be
are closely related to the same basic interest area. There is evidence that suggests
that a new type of more generalized high-tech innovator does exist, that is, the
change leader. Such individuals tend to embrace and popularize many of the
and having high levels of fashion awareness. They can be a middle-aged group
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5. Review questions
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6. Further readings
Engel, J. F., Roser D. Blackwell and Paul W. Miniard, Consumer Behavior, Dryden
Ohio, 1995.
Peter, J.Paul ,and jerry C.Olsen, Consumer Behavior and Marketing Strategy , Richard
Hawkins Del l.,Roger J.Best, Kenneth A. Coney, Consumer Behavior Implication for
Engel James F.David T. Kolat and Roger D.Blackwell, Consumer Behavior ,Holt,
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