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Table Of Contents

CAUSESOF CONSUMER INVOLVEMENT
Personal Factors
Product Factors
Situational Factors
TYPESOF INVOLVEMENT
Situational Involvement
EnduringInvolvement
EFFECTSOF CONSUMER INVOLVEMENT
Processingof Information
Depthof Comprehension
Extent of CognitiveElaboration
Level of Emotional Arousal
InformationTransmission
MODELSOF CONSUMER INVOLVEMENT
LowInvolvement LearningModel
Learn-Feel-DoHierarchyModel
HighInvolvement / HighThinking
HighInvolvement / HighFeeling
LowInvolvement / LowFeeling
LowInvolvement / LowThinking
Level of MessageProcessingModel
Product versusBrandInvolvement Model
LESSON-3
STEPSIN DECISION MAKING PROCESS
1. NeedRecognition
2. InformationSearch
3. Evaluationof Alternatives
4. PurchaseDecision
5. Post- PurchaseBehaviour
CONSUMER DECISION RULES
2. Noncompensarory Decision Rules: In contrast to the above rule
LEVELSOF CONSUMER DECISION MAKING
1.Extensive Problem Solving ( EPS ) : When consumers buy a new or
LESSON-4
CONSUMER BEHAVIOUR AND MARKETING IMPLICATIONS
CONSUMER BEHAVIOUR AND MARKETING STRATEGIES
CONSUMER BEHAVIOUR AND MARKET SEGMENTATION
CONSUMER BEHAVIOUR AND PRODUCT POSITIONING
CONSUMER BEHAVIOUR AND MARKETING RESEARCH
CONSUMER BEHAVIOUR AND NON-PROFIT AND SOCIETAL
MARKETING
CONSUMER BEHAVIOUR AND GOVERNMENTAL DECISION
MAKING
LESSON-5
ECONOMIC OR MARSHALLIAN MODEL
1. DisposablePersonal Income
PSYCHOANALYTICAL MODEL
SOCIALOGICAL MODEL
HOWARD - SHETH MODEL
Black Boxof Buyer behaviour
NICOSIA MODEL
KEY TERMS
REVIEW QUESTIONS
APPLICATION ACTIVITIES
Glossary
UNIT –II
Section–I
CULTURAL & ENVIRONMENTAL INFLUENCESON CONSUMER
BEHAVIOUR
Introduction
CULTURE - Meaning
Cultureislearnedthroughthefollowingthreeways:
Characteristicsof Culture
Typesof Culture
Hofstede’sFiveDimensionsof Culture
5. Abstract versusassociativethinking
CULTURAL INFLUENCES
VariationinCultural Values
I. Other OrientedValues
II. Environment OrientedValues
III. Self-OrientedValues
SUBCULTURESAND CONSUMER BEHAVIOUR
Sub-culturecategoriesare:
CROSSCULTURAL CONSUMER BEHAVIOUR
Crosscultural marketing: ObjectivesandPolicies
Characteristicfeaturesof afirmgoingglobal:
ProblemsinCrossCultural marketing
Cross-Cultural Consumer Analysis
JapaneseCultureTraits AmericanCulturetraits
AlternativeMultinational Strategies
Product Strategy StandardizedCommunications LocalizedCommunications
TangibleBenefitsof Global BrandBuilding
StrategicImplications
CULTURAL VARIATIONS& NON-VERBAL COMMUNICATION
Time
Monochronicculture Polychronicculture
Space
Friendship
Agreements
Things
SymbolsandColours
Etiquette
Self-practiceQuestions
SECTION - II
GROUPS, SOCIAL CLASS& REFERENCE GROUPS
Objectives
WHAT ISA GROUP?
Typesof Groups
1. PrimaryversusSecondaryGroups
2. Formal versusInformal Groups
Impact of social class
REFERENCE GROUPS
What isaReferenceGroup?
BroadeningtheReferenceGroupConcept
TYPESOF REFERENCE GROUPS
Factorsthat Affect ReferenceGroupInfluence
InformationandExperience
Conspicuousnessof theProduct
ReferenceGroupImpact onProduct andBrandChoice
ReferenceGroupsandConsumer Conformity
Benefitsof theReferenceGroupAppeal
IncreasedBrandAwareness
ReducedPerceivedRisk
KeyTerms
Self PracticeQuestions
SECTION –III
FAMILY INFLUENCES& DECISION MAKING
THE FAMILY
What isaFamily?
What isaHousehold?
Structural VariablesAffectingFamiliesandHouseholds
Sociological VariablesAffectingFamiliesandHouseholds
FUNCTIONSOF THE FAMILY
(1) EconomicWell-Being
(2) Emotional Support
(3) SuitableFamilyLifestyles
(4) Socializationof ChildrenandOther Family Members
FAMILY LIFE CYCLES
FamilyLifeCycleCharacteristics
Stagesin FamilyLife Cycle
EconomicCircumstances LikelyBuyingBehaviour
YoungSingles
NewlyMarriedCouples
Full Nest I
Full Nest II
Full Nest III
Married, NoKids
Older Singles
EmptyNest I
EmptyNest II
SolitarySurvivor
RetiredSolitarySurvivor
FAMILY DECISION-MAKING
RoleBehavior
Individual RolesinFamilyPurchases
FamilyRoles
KeyFamilyConsumptionRoles
InfluencingSpousesandResolvingConsumer Conflicts
Children
TeenagersandPost teens
Segment
Name KeyCharacteristics
Familymarketing
InfluencesontheDecisionProcess
InfluencebyDecisionStage
Influenceof employment
Influenceof Gender
Casediscussion: FamilyInfluences
Questionsfor discussion
SECTION –IV
OPINION LEADERSHIP& DIFFUSION OF INNOVATIONS
OPINION LEADERSHIP
What isopinionLeadership?
Characteristicsof OpinionLeaders
A profileof OpinionLeaders
General attributesacrossproduct
FrequencyandOverlapof Opinion
1. TheInnovation:
2. Thechannelsof Communication:
3. TheSocial System
4. Time
Typeof Time Meaning Examples
Influenceof Product Characteristicsondiffusion
Classificationof Adopters
Innovators
Earlyadopters
Early majority
Latemajority
Laggards
Nonadopter Categories
Roleof Personal Influence
Market strategyrelatedtodiffusion
Diffusionenhancement strategies
DiffusionDeterminant Diffusioninhibitor Diffusionenhancement strategies
UNIT - III
LessonOutline
1. CONSUMER PERCEPTIONS
1.2Theprocessof perceptionhasthreesubstages-
1. Selectiveattention
2. Selectivedistortionand
3. Selectiveretention
1.3Elementsof Perception
Humansensitivityreferstotheexperienceof sensation
Sensationitself dependsonenergychange, thedifferenceof input
As sensory input decreases, the ability to detect changes increases. This
Processof Perception
Perceptual process
1.6Perceptual processes
1.7BiasesinthePerceptual Process
1.8 Dynamicsof Perception
1.8.1Perceptual Selection
TheNatureof theStimulus
Expectations
Motives
SelectivePerception
Grouping
Closure
1.8.3Perceptual Interpretation
Perceptual Distortion
Perceptual Mapping
1.9 MarketingApplicationof Perception
1.9.1Positioningof Services
1.9.2PerceivedPrice
1.9.3ReferencePrices
1.9.4PerceivedQuality
1.9.5PerceivedQualityof Products
1.9.6PerceivedQualityof Services
1.9.7Price/QualityRelationship
1.9.9Manufacturer’sImage
2. CONSUMER LEARNING
2.1Consumer Learning
2.2.1Classical Conditioning
2.2.2CognitiveAssociativeLearning
2.2.3StrategicApplicationsof Classical Conditioning
2.3Instrumental Conditioning
2.3.1Reinforcement of Behavior
(fixed ratio) reinforcement, and random (variable ratio) reinforcement
2.4Modelingor Observational Learning
2.5CognitiveLearningTheory
InformationProcessing
2.6.1LimitedandExtensiveInformationProcessing
2.7Involvement Theory
2.7.1 Involvement TheoryandMediaStrategy
2.7.2Therearelimitationstosplit-braintheory
Involvement TheoryandConsumer Relevance
2.8Central andPeripheral RoutestoPersuasion
2.9Measuresof Involvement
2.10MarketingApplicationsof Involvement
RecognitionandRecall Measures
Thelearningprocessesamongthecustomer roles
User
BEHAVIORIST COGNITIVIST
3. CONSUMER ATTITUDES
Attitudes
3.1.Modelsof Attitude
3.1.1Tri-component AttitudeModel
3.1.2Multi-attributeAttitudeModels
2.3Theoryof TryingtoConsume
3.1.3. Attitude-toward-the-admodels
3.2.1. Learningof Attitudes
3.2.2. Sourcesof InfluenceonAttitudeFormation
PersonalityFactors
1. Changingthebasicmotivational function:
2. Associatingtheproduct withanadmiredgroupor event
3. Resolvingtwoconflictingattitudes
4. Alteringcomponentsof theMulti-attributemodel
(1) Changingtherelativeevaluationof attributes
(2) Changingbrandbeliefs
(3) Addinganattribute
(4) Changingtheoverall brand rating
(5) Changingconsumer beliefsabout competitor’sbrands
3.3CognitiveDissonanceTheory
Tacticsthat consumerscanusetoreducedissonanceincludereduction:
3.4.AttributionTheory
3.4.1. Self-PerceptionTheory
3.4.2AttributionsTowardOthers
3.4.3AttributionstowardThings
HowWeTest Our Attributions
4.MOTIVATION
b. Psychological needs: personal competence
c. Learned(secondaryor cultural) needs: acquired needs
4.2.NeedsArousal
4.3.What determinescustomer needs?
4.4.What determinescustomer wants?
1. Theindividual context:
2. TheEnvironmental Context:
4.5.Maslow’sHierarchyof Needs
4.6.Sheth’sFiveNeeds
4.7McCLELLAND’SThreeNeedsTheory
·nACH:
·nPOW:
·nAFF:
4.8MotivesandMotivation
4.9.Positiveor negativeMotivation
4.10.Consumer Motivation
Personal Motives
Social Motives
4.11.Customer Moods
4.12.HedonicConsumption
How involved with the product are most prospective buyersin the target
5. PERSONALITY
5.1.TheNatureof Personality
PersonalityReflectsIndividual Differences
PersonalityisConsistent andEnduring
PersonalitycanChange
PersonalityPerspectives
5.2.1. FreudianTheory
5.2.2 Neo-FreudianPersonalityTheory
5.2.3. Trait Theory
5.4Personality& Consumer Diversity
5.5Consumer InnovativenessandRelatedPersonalityTraits
traitstobediscussedinclude:
5.5.1. Consumer Innovativeness
5.5.2. Dogmatism
5.5.3. Social Character
5.5.4. Needfor Uniqueness
5.5.5OptimumStimulationLevel
5.5.6. Variety-NoveltySeeking
5.6.CognitivePersonalityFactors
5.6.1. Needfor Cognition
5.6.2. VisualizersversusVerbalizers
5.7.Consumer Materialism
5.8FixatedConsumptionBehavior
5.9CompulsiveConsumptionBehavior
5.10BrandPersonality
5.11BrandPersonification
5.12.PersonalityandColor
5.13Self andSelf-image
5.13.1. TheMakeupof theSelf-Image
5.13.2. TheExtendedSelf
4. PSYCHOGRAPHICS, VALUESAND LIFESTYLES
4.2.What isaconsumer lifestyle?
4.2.1. LifestyleimpactsonConsumer Analysis
VALS(Value& lifestyle) Segmentationbasedonvalue& lifestyle orientation-
Thismeans:
Factorsshowingsocial classdifferences
Questions
Perceptual mapping
In-Storestimuli, storeimageandloyalty
MARKET SEGMENTATION
Definitionof BuyingBehavior:
TyingIt Together
Storeloyalty
AccordingtoAmericanMarketingAssociation– Store Loyalty is defined as-
Self-Assessment Questions
Response:
Response
Doit yourself
TheNike story beginswith itsfounder, runningenthusiast Phil Knight. In
Adidas and Puma. Knight recognized a neglected segment of serious
athletes who had specialized needs that were not being addressed. The
concept wassimple: Providehigh-quality runningshoesdesigned especially
for athletesby athletes. Knight believed that “high-tech” shoesfor runners
could be manufactured at competitive prices if imported from abroad
Without much cash to do any advertising for hisproducts, Knight crafted
his“grassroots” philosophyof sellingathleticshoes: Speakingtoathletesin
their language and on their level; sharing their true passion for running;
and listening to their feedback about his products and the sport. Each
weekend Knight would travel from track meet to track meet—both high
school and collegiate competitions—talking with athletesand selling Tiger
shoesfromthetrunk of hisgreenPlymouthValiant
The company’s commitment to designing innovative footwear for serious
athleteshelped it build a cult followingthat rapidly reached theAmerican
become the number one athletic shoe company in the United States
Unfortunately for the company, thiswave of success was soon to crest as
rival companies positioned themselves to take advantage of the aerobics
developed fashionable and comfortable products aimed at women fitness
enthusiaststhat soldremarkablywell
Nikerefusedtojoinamarket it sawaslowinqualityandheavyoncosmetic
The company lost millions in sales and allowed Reebok to gain basically
Nike’s market share, with 30 percentage points compared to Nike’s 18
Fortunately for Nike, the company chose to fight back with product
innovations and persuasive marketing. The company’s “Air” technology
revitalized the company with the additional aid of successful advertising
campaignssuch asthe 1987 “Revolution in Motion” spot for the new Air
Maxshoesandthe“Air Jordan” commercials. WhenNikeunveileditsnow-
By 1989, Nike had regained the market leader position in America as
market sharerosethreepointsaboveReebok to25percent that year
Inthe1990s, Nikecontinueditsconsumer focus. Nikekept its“finger onthe
pulse” of theshoe-buyingpublicin part through theuseof “EKINs” (Nike
spelled backwards) – sports-loving employees whose job was to hit the
streetstodisseminateinformation about Nikeand find out what wason the
minds of retailers and consumers. Nike’s “Brand Strength Monitor”
formally tracked consumer perceptions three times a year to identify
INTRODUCTION :
THE BORDERLESSCONSUMER MARKET:
b)Basisfor Competitiveadvantage:
c) Businessat thespeedof thought:
d) Virtual enterprise:
e) Customer : Co-producer of productsandservices:
f) Customer : A Warehouseof Information:
g) Thedeath of Businessandconsumer marketing:
h)Theroleof DistributionChannels:
i) Thepoor asamarket segment :
j) Environment Protection:
k) DiversityandConvergenceCoexist :
Internet User Profile:
HowtheInternet isinfluencingConsumer Behavior :
NON –STORE CHOICES:
OBJECTIVE:
INTRODUCTION:
Importanceof consumer perception:
Formationof Perceptions:
Bycontrasting:
ByProjectingtheunexpected:
ByMotivating:
PerceptionsandBrand:
Consumer Perceptionof Risks:
PlayingTrumps:
ACTIVITY –A
REFERENCES:
RESEARCH AND APPLICATIONSOF RESPONSESTO DIRECT
MARKETING APPROACHES
WHAT ISDIRECT MARKETING
RESAEARCH AND DATABASE DEVELOPMENT
Characteristicsof aGoodDatabase:
DIRECT MARKETING MIX
CommunicationProgramme
Customer Service:
TimingandSequencing:
THE RESEARCH PROCESS:
Direct marketingapproachthroughMarketingIntelligencesystem:
Componentsof IntelligenceSystem:
CompetitionIntelligence:
SCALESUSED TO MEASURE THE ATTITUDE OF THE CUSTOMERS
IN THE CUSTOMER INTELLIGENCE SYSTEM:
Ordinal Scales:
InterviewSchedule:
AssociationTests:
TOOLSFOR DATA COLLECTION
StepsinQuestionnaireDesign:
FUTURE OF DIRECT MARKETING IN INDIA AND THE CONSUMER
a. Reachingout tonon-metro/non-urbanmarkets:
b. EnhancingCredibilityof theOffer
c. Wider useof debit andcredit card
d. Emergenceof specializeddatabasefirms
ISSUESOF PRIVACY AND ETHICS:
CONSUMER PRIVACY :
ETHICSIN BUSINESSAND ITSRELEVANCE TO CONSUMER
BEHAVIOR :
ETHICSISNOT A MATTER OF CHOICE :
ETHICSFLOW FROM THE TOP:
ETHICSISA JOURNEY :
What isethical purchasing?
Understandingbuyingethically
10shoppingtipsfor theethical shopper
DEVIANT CONSUMER BEHAVIOR :
FRADULENT CONSUMER BEHAVIOR :
Ethical shoppingandethical tradeinitiatives:
SAQ’S:
Reference:
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Consumer Behaviour

Consumer Behaviour

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Published by Sanjib Kumar Jena

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Published by: Sanjib Kumar Jena on Sep 04, 2010
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