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SMM 05: CONSUMER BEHAVIOUR AND MARKETING RESEARCH UNIT 1 AN INTRODUCTION TO CONSUMER BEHAVIOUR AS MARKETING DISCIPLINE: The term Consumer Behaviour can be defined as the behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs. The study of consumer behaviour is the study of how individuals make decision to spend their available resources (money, time, efforts) on consumption related items. It includes the study of what they buy, why they buy it, how they buy it, when they buy it, where they buy it, and how often they buy it. The answers to these questions can be found through consumer research and provide the manufacturer with important input for product scheduling, design modification, and promotional strategy. In addition to studying consumer use and post purchase evaluation of the product they buy, consumer researchers are also interested in how individuals dispose of their once-new purchases. The answer to this question is important to marketers because they must match their production to the frequency with which consumers buy replacements. But it is also important to society as a whole, because solid waste disposal has become a major environmental problem that marketers must address in their development of products and packaging. As students of human behaviour, it is important for us to understand the internal and external influences that impel individuals to act in certain consumption-related ways. Consumer behaviour is simply a subset of the larger field of human behaviour. As marketers and future marketers, it is important for us to recognize why and how individuals make their consumptions decisions so that we can make better strategic marketing decisions. Without doubt, marketers who understand consumer behaviour have a great competitive advantage in the market place. CONSUMER BEHAVIOUR PRINCIPLES IN STRATEGIC MARKETING There are numbers of reasons why the study of consumer behaviour developed as a separate marketing discipline. Marketing scientists had long noted that consumers did not always act or react, as economic theory would suggest. The size of consumer market in this country is vast and constantly expanding. Consumer preferences are changing and becoming highly diversified. As marketing researchers began to study the buying behaviour of consumers, they soon realized that despite overriding similarities, consumers were not alike. Despite a sometimes Me too approach to fads and fashions, many consumers rebelled at using the identical products everyone else used. Instead, they prefer differentiated products that they feel reflect their own special needs, personalities, and life-styles. To better meet the needs of specific groups of consumers, enlighten marketers developed the policy of market segmentation, which called for the division of their total potential markets into smaller, homogeneous segments for which they could design a specific product and / or promotional campaign. They also used promotional techniques to vary that image of their products so that they were perceived as better fulfilling the specific needs of certain groups of consumers--a process now known as positioning In addition to the fast pace of new product introduction, other factors that contributed to the development of consumers behaviour as a marketing discipline include shorter product life cycles, environmental concerns, increased interests in consumers protection and public policy registration, the

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growth of services marketing and non-profit marketing, the growth of international markets, and the development of computers and sophisticated method of statistical analysis. CONSUMER ORIENTED VIEW OF MARKETING STRATEGY: THE MARKETING CONCEPT The philosophy that marketing strategies rely on better knowledge of the concept is known as the marketing concept. The marketing concept states that marketers must first define the benefits consumers seek in the marketplace and gear, marketing strategies accordingly. Acceptance of this concept has provided the impetus for studying consumers behaviour in a marketing context. First formulated in the early 1950s, the marketing concepts seem so logical today that we may wonder why marketers did not turn to it sooner. There are two reasons. First, marketing institutions were not sufficiently developed before 1950 to accept the marketing concept. Consumer behaviour research was in infancy. Moreover, advertised and distributive facilities were more suited to the mass production and mass-marketing strategies of that time. The implementation of the marketing concept requires a diversity of facilities for promoting and distributing products that meet the needs of smaller and more diverse market segments. This diversity in marketing institutions did not exist before 1950. Instead, the emphasis was on economies of scale of production and marketing. The second reason the marketing concept was not accepted until 1950s is that prior to that time there was no economic necessity to do so. During the Depressions, there was little purchasing power to spur an interest in the consumer behaviour. During World War-II and immediately after, scarcities were prevalent. There was no competitive pressure to discover consumers motives or to adjust product offerings to consumers needs. Manufactures could sell whatever they made. During 1953 this orientations changed. Different marketers brought out similar lines of products but now they found consumers reluctant to buy. Consumers had become more selective in their purchasing habits. The economy experienced its first true buyers market. For the first time, supply exceeded demand, and inventories built up in the face of consumer purchasing power. Some marketers reacted by intensifying the old strategies: pushing the existing line, heightening the selling efforts, repeating selling themes, and pushing excess inventories on unwilling distributors and dealers. Others reacted with more foresight by recognizing the right combination of product benefits would influence reluctant consumers to purchase. These manufacturers researched the market to identify the consumers needs and to develop products to fit those needs. This newer approach resulted in an expanding set of product offerings. It also caused advertising strategy to shift from the repetitive campaigns designed to maintain brand awareness to more creative, diverse campaigns designed to communicate product benefits. Marketers began talking in behavioural terms. In this new context, a product must be positioned to deliver a set of benefits to a defined segment of consumers. Advertisings goals are to communicate symbols and images that show how the brand delivers these benefits, to create a favourable attitude toward the brand, and to induce trial. Advertising is also intended to reinforce the consumers choices to influence them to re-purchase.

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There are two broad approaches to the study of consumer behaviour. A managerial approach views consumers behaviour as an applied social science. It is studied as an adjunct to a basis for developing marketing strategies, a holistic approach views consumer behaviour as a pure rather than applied social science. In this view, consumer behaviour is a legitimate focus of inquiry in an of itself without necessarily being applied to marketing although it may appear that the first view has the most credence for marketers, in reality, a holistic approach also provides a useful perspective to strategy in many cases. The growing sophistication of consumers combined with such factors as changing social mores and increasingly aggressive competition dictate that an ongoing effort at knowing the consumer is no longer a casual matter. Even a local independent retailer often cannot adequately characterize its key competitor. Everyone has expectations as to how people would act under various circumstances, and most people even engage in predicting the behaviour of those in whom they have an interest. Of course, these behavioural propositions are not used only for predicting behaviour; they also can be used as an aid to the planning of actions. The fact that an understanding of consumer behaviour must start with a fundamental appreciation of consumer actions on a micro level. Therefore, in a very real sense, to expect even a limited success in coming to understand consumer behaviour at this stage, each student must consciously decide to be more observant of his or her own behavioural patterns as well as those of others. This must be done while keeping in mind not to make broad generalizations. Consumers combined with such factors as changing social mores and increasingly aggressive competition dictate that an ongoing effort at knowing the consumer is no longer a casual matter. Even a local independent retailer often cannot adequately characterize its key competitor. Everyone has expectations as to how people would act under various circumstances, and most people even engage in predicting the behaviour of those in whom they have an interest. Of course, these behavioural propositions are not used only for predicting behaviour; they also can be used as an aid to the planning of actions. Although consumer behaviour is complex, the identification of a few basic relationships that capture the essence of modern social science theory can serve to introduce the subject. Further more, since consumer behaviour is a part of all human behaviour, any theory of consumer behaviour must be consistent with what is basic to human behaviour. Lewin offers a conceptual view that summarizes the essence of contemporary thinking and portrays human behaviour as the result of the interaction among components of what is viewed as ones life space. This can be represented as follows B = f (life space) Or stated another way,

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B = f (P, E). The life space consists of the total facts that psychologically exist for an individual at a given moment. The life space is really the totality of individuals world as he or she perceives it, and in such a context, a thing exists only if it has demonsratable effects upon behaviour. In the latter formula, (B) represents behaviour, (f) function, (P) person, and (E) environment. This expression states that an individuals behaviour is the result of the interaction between the individual and his or her environment. The behaviour that is being referred to is broad and involves all human actions, including buying behaviours. The (P) person in the formula is composed of at least two distinct dimensions. One is heredity; that is, to a large extent individuals are genetically determined entities. Some physical characteristics that may set very real limits on ones activities are inherited and cannot be altered. However, at birth humans also begin to acquire information and, thus, learning is another major dimension of the (P) person in the Lewins model. The (E) environment component recognizes the influence of both the near physical and social settings on behaviour. The life space has also been called a persons psychological field. Lewinian formula offers another means of conceptualising what it is that shapes human behaviour. Environment Man in the present (Needs and Drives)

Past

Future

Fig 1.1: A Persons Psychological Field As figure 1.1 indicates, a person is moved by basic needs that are internal and exist largely apart from his environment. In this sense, man is similar to many animals. However, as a human being he has a considerable capacity to call upon past experiences and observations as well as to anticipate the future. In addition, man as a social being is profoundly influenced by the other people and, of course, is affected by the physical environment, as are other forms of life. By perceiving a person as being subject to compound and sometimesconflicting motivational determinants, it is possible to recognize the complexity of the forces underlying behaviour. Each individual must adapt to his unique psychological field, and to him, this field is reality. He will establish forms of behaviour that permit a workable and meaningful pattern of adaptation to his perception of the world. Despite individual weakness and the complexity of the forces that affect people, and orderly study of human behaviour is possible. CONSUMER ANALYSIS IN MARKETING:

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Marketing thought has undergone dramatic changes because of the post World War-II infusion of behavioural science concepts, and many of the earliest views of buyer behaviour have had to yield to new information. As a result, contemporary thought is a blend of old and the new. It is helpful to discuss both the traditional viewpoint, because of its historical contributions, and the more recent modifications. At an early date there were two separate and distinct groups interested in consumer behaviour: (i) Marketing practitioners and (ii) Social scientists. Each group had dissimilar orientations to the subject, used different means to study, and sought results that were consistent with their separate perspectives. Figure-1.2 identifies the variation just described. The early marketing practitioners were essentially pragmatic in their study. They most often focused in variables that had a high degree of face validity in their predictive capacity. For instance, there was generally little disagreement with the proposition that favourable attitudes and selected demographic characteristics influenced buyer behaviour. Studies were initiated to demonstrate such relationships and to use these results to predict behaviour as well as to aid in strategy development. These studies were not ordinarily tied to any conceptual framework, but were more or less carried on in serial fashion--one after another as a problem arouse.

Marketing Practitioners

Social Scientists

Human Behaviour

Consumer Behaviour

Focus of Analysis

Focus of Analysis

- Attitudes
- Personality - Demography

- Diffusion on
Innovations

- Mass persuasion
Result Sought

- Facilitate the prediction

of behaviour - Aid in strategy development

- Further level of knowledge

about this special case of human behaviour - Theory validation

Fig-1.2: Early Orientation in Studying Consumer behaviour The works of Engel, Kollat, and Blackwell; Howard and Seth; And Nicosia are the exemplary contributions in the theory of consumer behaviour. These represent specific attempts at identifying all the significant variables that shape consumer action and the inter relationships among these factors. These works are truly unique accomplishments and have made several note-worthy contributions. 1. They have brought to light the limitations of the attempt to transplant various behavioural theories developed in other disciplines such as Psychology and Sociology without appropriate modification. 2. Through persistent efforts to formulate comprehensive theories, consumer analysts have gained much self-confidence. Although considerable works remains, there is a feeling of having made some progress. 3. This development process in an applied discipline such as consumer behaviour has also fostered a demand for comprehensive theory that is grounded in reality-based upon realistic assumptions and verifiable propositions. CONSUMER (BUYING) DECISION PROCESS: Prior to discussing the integrativecomprehensive models of consumer behaviour, it is necessary to consider the evaluative processes of the behavioural sciences, focusing on the distributive approach and the decision-process approach. DISTRIBUTIVE APPROACH: Empirical research on consumer behaviour historically has utilized the distributive approach. Consequently, consumer behaviour has been conceptualised and studied as an act rather than a process or series of interrelated acts. Researchers utilizing this approach attempt to determine the relationship between the outcome of consumer decision-making and a variety of independent variables such as income, social class, race, and marital status. ADVANTAGES OF THE DISTRIBUTIVE APPROACH The Distributive approach has been frequently used because it has many advantages. The major advantage is that research utilizing this strategy is relatively simple and typically less expensive than other alternatives. Further more, it has been very useful in those instances where the independent variables under the study are highly correlated with the purchase of the product. The Distributive approach

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has proven to be somewhat useful in estimating marketing potential and in making media selection decisions. LIMITATIONS OF THE DISTRIBUTIVE APPROACH: There are also a number of limitations inherent in the Distributive approach. The foremost difficulty is that these approaches can, at best, provide only a partial or incomplete explanation of consumer behaviour. Consumer analysts now agree that the act of buying a particular product is only a fraction of the relevant consumption behaviour: that is, it is important to recognize that the decision to purchase a specific product is preceded by some pattern of conscious and sub-conscious actions that are a part of decision making. Unless purchase acts are related to theses broader processesand they seldom are both the decision and the correlates of the decision may be misleading in the sense that they may be true only if certain mixture of pre-decision process takes place. Further more, the Distributive approach does not provide the marketing manager with any insight into why the relationship between an independent variable and purchase decisions exists. Because this approach fails to provide information on the sequence of events culminating ion a purchase act, it is of limited value in developing effective marketing strategies or in evaluating existing business practices in terms of their relationship to consumer needs.

DECISIONPROCESS APPROACH:

The Decision-process approach to the study of consumer behaviour focuses on the means by which consuming units reach a purchase decision. The configuration of this decision process consist of five processes linked in a sequence (i) Problem Recognition, (ii) Alternative Evaluation-internal search, (iii) Alternative Evaluation-external search, (iv) Purchase, and (v) Outcomes. This conceptualisation describes the behavioural process that are operative from the time the consumer recognizes that some decision is necessary to the point at which there is some post-purchase evaluation of the particular purchase. ADVANTAGE OF THE DECISIONPROCESS APPROACH: The DecisionProcess approach has some distinct advantages over the distributive approach. This approach, as the name implies, views consumer behaviour as a process and is as concerned how a decision is reached as it is with the decision itself. Furthermore, the decision approach involves a sequence of processes, including the steps that generally precede the decision, the decision itself, and the course of action that follows the decisions. This approach is a more extended and elaborate means of

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studying consumer behaviour than is the distributive approach; therefore, it can ordinarily provide the marketing manager with more relevant information. The identification of various stages of consumer decision making and the factors that influence at each stage can contribute to the development of more effective marketing strategies and appropriate public policy for regulation of business practices. LIMITATIONS TO THE DECISIONPROCESS APPROACH: There are numbers of limitations associated with these approaches to studying consumer behaviour. In particular, the fact that the decision process approach is a relatively recent development means that less empirical research has been conducted using this perspective than researchers would like. Furthermore, the research that has been done from the Decision-process approach has revealed a considerable amount of variation among consumers in their decision-making behaviour. Another difficulty is that very little research has included more than a one phase of decision process, and therefore, little is known about the relationship among the phases or the influence of one phase on another. Despite the fact that there are number of problems involved in conceptualisation and study of consumer behaviour from the decision-process approach, it is increasingly recognized that the advantages outweigh the limitations. INTEGRATIVECOMPREHENSIVE MODELS OF CONSUMER BEHAVIOUR: With the emergence of consumer behaviour as a subject for intensive studying in its own right, researchers and practitioners realized the need for an integrative-comprehensive model. Each of these models attempts to represent the essential qualities of consumer behaviour. HOWARD-SHETH MODEL: John Howard proposed the first truly integrative model of buyer behaviour in 1963. Howards model was based on a systematic and thorough utilization of learning theory. Perhaps the most important contribution of Howards model was the distinction drawn between extensive problem solving, limited problem solving, and automatic response behaviour. This model drew attention to the need for an inter-disciplinary approach to clarification of the conceptual basis for such a model and to the need for extensive development of practical implications of buyer behaviour models. The Howard Sheth model consists of four sets of constructs of variables (i) input variables, (ii) output variables,(iii)hypothetical constructs, and (iv)exogenous variables. Each of the variables includes in the model and the hypothesized linkage is described in Howard and Sheths book The Theory Of Buyer Behaviour. Howard and Sheth contend that when a buyer is interested in purchasing something, he actively seeks information from his commercial and social environment. The buyers perceptual processes limit the information received and modify it so that it is consistent with his own frame of reference. In addition to the process of searching for information, the buyer draws from his learning constructs, such as attitudes and motives. The choice criteria the buyer has developed enable him to choose a brand that has the greatest potential for satisfying his motives. When a buyers experiences with a brand are satisfactory, the evaluation of it increases and the likelihood of his purchasing that brand of product increases. If the buyer repeats the decision a number of times, routinised purchase behaviour develops. Whether or not a

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person actually buys a given alternative brand, however, is a function of the comprehension of brand attributes, attitude toward the brand, confidence in the purchase, and individual intention. Furthermore, the exogenous variables help explain individual differences to such factors as financial status, time pressure, and social class. The great strength of this model lies in the fact that a multiplicity of variables are linked in a precise way. The relationships hypothesized in the model at times approach the rigour of fully developed theory. The work of Howard and Sheth has stimulated and enriched the thinking and research of nearly every student of consumer behaviour. Despite its many contributions, a number of weaknesses are evident in the model. First, the distinction drawn between hypothetical and measurable variables introduces unnecessary complexity. The empirical research undertaken for the purposes of validation has indicated the need for modifications and extensions of the model. In addition, some variables that were originally included were found not to be related as hypothesized, while others not specified should have been included. In conclusion, it is fair to say that the empirical research seems to provide considerable support for the model generally, but it has demonstrated the need for extensive revision. ENGEL, BLACKWELL, AND KOLLATS CONSUMER DECISION PROCESS MODEL : The Consumer Decision Process model which serves an integrative and organizational function is the third version of a model developed by Engel, Blackwell, and Kollat. This Consumer decision process model is not an end in itself; rather is a means to facilitate understanding of a very complex phenomenon. The model has the following criteria. (i) (ii) (iii) (iv) (v) (vi) (vii) The model conforms well to the rules of logic. The model is internally consistent. The model encompasses relevant theories. The model can be empirically operationalised. The model serves as a basis to derive new models. The model is consistent with existing model. The model suggests new directions for research.

Following figure 1.3 summarizes the situatio

Problem recognition Search Alternative evaluation Choice

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Fig: 1.3 The Stages in the Consumer Decision Process The consumer decision process model is organized around five interrelated decision-process stages: (i) Problem Recognition, (ii) Search, (iii) Alternative Evaluation, (iv) Choice, (v) Outcomes. These phases are affected by internalised environmental influences, general motivating influences, product/brand evaluation and information processing. PROBLEM RECOGNITION Problem recognition occurs when an individual perceives a difference between an ideal state of affairs and the actual state of any given moment. The simplified depiction of problem recognition in figure 1.4 indicates that there are two basic sources of problem recognition: (i) Motive activation, (ii) External stimuli. Problem recognition can be activated by a number of factors, which tend to fall into one of these categories. Problem recognition can be activated solely by motive activation without any type of external stimulation. Motives are enduring predisposition to strive to attain specific goals, and they contain both an arousing and a directing dimension. Motive activation causes the individual to become alert, responsive, and vigilant because of the feelings of discomfort produced. The result is the formation of a consciously felt drive that energizes motive satisfying behaviour.

Problem recognition External Stimuli

Fig 1.4 Problem Recognition Problem recognition can also be activated by external stimuli. Technically, external stimuli affects new information and experience that trigger motive and, in turn, motive activates problem recognition. Fig1.4 demonstrates this. However, not every perceived discrepancy between actual and ideal will result in problem recognition. There is a minimum level of perceived difference that must be surpassed before recognition occurs. The level of perceived difference that is necessary for problem recognition to result will vary among consumers and circumstances SEARCH Once a problem is recognized and no constraints intervene to halt the decision

Information & experience

Motives

STIMULI Mass Personal General Marketer dominated

Problem recognition

Information & Experience

Search

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Fig1.5 The Search Process process, the consumer must then assess the alternatives for action. Initially the consumer will search internally to determine whether or not sufficient information is available to make a purchase decision. If the internal search and the alternative evaluation process reveals that alternatives have been well defined and a satisfactory one can be identified, the remaining stages of the decision process will be circumvented, and a purchase decision will be made. This type of response to problem recognition is referred to as routinized behaviour. If the internal search does not prove to be sufficient, external search is activated. The process is illustrated in the figure 1.5. While only stored information and experience are depicted in this simplified diagram, several other variables such as attitudes, beliefs, and personality also have impact on consumer. Internal search for information occurs instanteously and largely unconsciously. In many instances, this search is insufficient to permit the consumer to make a decision. Consumers differ significantly in their willingness and desire to search for purchase related information. These differences exist because some people are cautious and unwilling to act even after careful evaluation of alternatives because of the perceived implications of a wrong decision, whereas others are willing act largely on hunch and intuition. While there are numerous factors affecting an individuals willingness to search for information, researchers generally maintain that consumers search for information as long as the benefit of search exceeds the cost of the search. INFORMATION PROCESSING: Information processing refers to the process by which sensory inputs are transformed, reduced, elaborated, store, recovered, and used by the consumer. Research has established unequivocally that consumers are highly selective in the way they process information. In fact, the information loss and distortion can be so substantial that there is very little similarity between the actual content of the message and the content as perceived and retained by the consumer. Information loss and distortion occur as new information is passed through active memory. Active memory refers to that portion of consumers memory, which is used in processing and interpretation incoming information. That is, active memory as depicted in the following figure 1.6, is a type of filter that controls the flow of information. Stimuli Mass Personal General MarketerExposure A C T I V E M

Information & experience

Attention

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Dominated E Reception M O R Y Fig 1.6 Information Processing Information processing begins with exposure, at which time the individual is in physical proximity to an informational stimulus such that there is opportunity for one or more senses to be activated. This makes the obvious point that the marketers first task is to get the intended message to the right person at the right point of time. Attention is defined as the active processing of an exposed stimulus such that a conscious impression is made within the active memory. Attention is highly selective, however, and many stimuli are completely filtered out. The key fact is whether or not the stimulus has pertinence for that individual. Attention is a necessary but not a sufficient precondition for message receptionthe accurate comprehension of the meaning of the stimulus and storage of that information in long-term memory. The filtering effect of active memory can distort meaning in such a way that some things are amplified whereas others are diminished or ignored. Not every correctly comprehended message enters into permanent memory, because there also is a tendency to retain only those, which are compatible with our present beliefs. The final stage of information processing as shown in fig1.6 is new information or experience, which enters into permanent storage. Obviously, it can affect all other things stored within memory and bring about changes. In the context of consumer behaviour, however, the greatest changes will be in product beliefs and attitudes, intention to purchase, and in actual purchase behaviour. The marketers real difficulty is to design messages that do not activate the filter in such a way that it prevents further processing or distorts the inputs. ALTERNATIVE EVALUATION: The information that the consumer processes can exert an influence on four key variables within the central processing unit: (i) Evaluating criteria, (ii) Beliefs, (iii) Attitudes, and (iv) Intentions Evaluative criteria are the internalise specifications and standards used by consumers to assess and compare alternative products. They are the desired outcomes from choice and use expressed in the form of specifications used to evaluate alternatives. Evaluative criteria are concrete, product specific manifestations of underlying personal goals, typically applied across several products within a product type. Several factors must be kept in mind when considering these evaluative criteria, which are shaped by an individuals personality, stored information, social influence, and marketing efforts of firms. These criteria change over time and consequently the evaluative criteria related to any product must be carefully monitored.

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Beliefs represent information that links a product or brand to evaluative criteria. Whereas evaluative criteria are highly individualized and, therefore, rather resistant to marketer influence, beliefs can normally be influenced by the marketer with little difficulty. Attitude can be defined as a learned predisposition to respond consistently in a favourable or unfavourable manner with respect to a given alternative. The alternative choice with the highest rating summed across the evaluative criteria has the greatest probability of being purchased and consumed when a corresponding need exist. Attitudes stand as one of the most analysed phenomena in general human behaviour. Intention refers to subjective probability that a specified action will be undertaken in a particular instance. Thus, it has been concluded that a change in attitude is necessary, but not sufficient, condition for change in intention. The change in intention than leads to a change in behaviour, unless it is inhibited by an environmental factor. Two environmental influences that have a particularly pronounced effect on intentions are normative compliance and anticipated circumstances. Normative compliance refers to the existence of perceived social influence on choice plus the motivation to comply with that influence. The sensitivity to comply with social influence is determined by the individuals personality make-up. Personality is normally considered to be the consistent pattern of responses to environmental stimuli. The term life-style, frequently used interchangbly with personality, refers to the pattern of enduring traits, activities, interests, and opinions which determines general behaviour and thereby makes one individual distinctive in comparison with another. CHOICE AND ITS OUTCOMES: The complete model of consumer behaviour integrates the portions of the model previously discussed. Furthermore, it depicts choice and outcomes, the last two stages of decision-making process. Choice generally follows the formation of a purchase intention but perceived unanticipated circumstances can serve as a barrier to such intention. Examples of unanticipated circumstances are: changes in income, changes in family circumstances, and non-availability of alternatives. In the event that an intended behaviour is thwarted, the intention either remains in existence until a later time or the decision-making process begins anew. The choice process includes the selection of the particular retail outlet at which product is purchased as well as those activities associated with determining the conditions of sales. The decision to purchase a product or service can result in two types of outcomes: satisfaction and dissonance. If the customers post-purchase evaluation indicates that the chosen alternative is consistent with prior beliefs and attitudes, the resultant outcome is satisfaction. . A purchase decision can also produce post-decision dissonance. Post-decision dissonance is a state of doubt motivated by awareness that although one alternative was chosen, the alternatives not chosen also have desirable attributes. Dissonance is especially likely to occur if the purchase is financially burdensome and several attractive alternatives were rejected. The purchaser now might be sensitive to the

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information that confirms the choice and thereby relives doubt. Therefore, post decision search for information is not unusual in such circumstances. VARIATIONS IN CONSUMER DECISION PROCESSES: The consumer decision process describe in the preceding pages is the most comprehensive type of decision-making. However, most consumer decision-making is not this complex. Indeed, the most common type of consumer decision makingthe habitual or routine decision processis at the opposite extreme. Consumers tend to rationalize their decision making as much as possible to reduce the complexity in their lives. In the case of routinised decision process behaviour, problem recognition will lead directly to a purchase intention and then to a purchase. The consumers beliefs and attitudes are fixed in the form of brand loyalty, thus simplifying substantially the decision process. In a sense, extended problem solving and routine behaviour lie at opposite ends of a continuum. In between is limited decision process behaviour, which occurs when there is good information about the domain of feasible alternatives but insufficient information about each to permit a sound decision. POST- PURCHASE BEHAVIOUR The managerial implications of the outcomes of consumer choice are apparent. The marketing analyst must regularly monitor consumers evaluation of the product to be certain that the product continues to receive favourable evaluation on evaluative criteria, beliefs, and attitudes. If the evaluation of choice results in complete dissatisfaction being transmitted to long-term memory, two types of outcomes can result. First, the consumer can discontinue this type of purchase behaviour. Discontinuance of purchase behaviour can result when the current solution is unsatisfactory and no other acceptable solution is available. The second type of out come that can result is a change in purchase behaviour. The consumer might continue his or her search for a satisfactory solution in other locations, re-evaluate the alternative solutions, or redefine the problem to increase the likelihood of locating satisfactory solution. If the feedback to the consumers long-term memory is partial satisfaction, the outcome might be (1) discontinuance of purchase behaviour; (2) continuance of purchase behaviour but with some reservations; or (3) modification of purchase behaviour. If partial satisfaction was experienced with respect to the solution of a one-time problem, the purchase behaviour will, of course, be discontinued. A consumer might be only partially satisfied and yet continue the same purchase behaviour because the product is an inconsequential one or because the best available alternative is presently being used. A postpurchase evaluation that results in partial satisfaction for the consumer may cause a modification in purchase behaviour. The modification can result from a change in the consumers problem recognition or from the alternatives available to the consumer. Post-purchase evaluation that result in partial satisfaction or dissatisfaction present particularly appealing opportunities to marketing analysts.

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Questions for Discussion The distinction drawn between the distributive approach and the decision approach is interesting to the academician but is unimportant to the marketing strategists. Comment. 1. 2. 3. 4. Discuss the stages of the decision process, the variations that occur in the decision process, and the underlying determinants of these variations. Comment on the following quotation: The decision-process model can explain deliberate, wellthought out consumer decision making but cannot explain impulse purchases. Most successful small business owners have never taken a course in consumer behaviour nor formally studied the subject. How can this be true? How might the decision-process approach help the manufacturer of high quality stereo equipment understand how and why consumers purchase his or her product? UNIT-2 CULTURAL AND SOCIAL FACTORS OF CONSUMER BEHAVIOUR: Environmental influencesculture, social class, groups, family--substantially affect consumer behaviour. These environmental variables not only influence specific consumer choice but also determine the nature of an individual in ways that influence all decision of that individual. CULTURAL INFLUENCES The shared values of large groups of people influence the means used to satisfy human needs. These values vary substantially among some cultural groupings whereas only inconsequential differences exist among others. The values and influence of smaller groups within the large culture have been less apparent and less well understood. Nevertheless, these groups, frequently called subcultures, affect consumer decision-making. The Nature Of culture: In simplest terms, culture serves an adaptive function; that is, it is a means of helping an individual adapt or cope with the world. A significant part of the importance of culture stems from the influence it has on peoples perceptions, attitudes, and values. This leads to the realization that human decision making is greatly affected by the culture in which it operates. The term culture is used to mean the complex set of variables, ideas, attitudes, and other meaningful symbols created by humans to shape behaviour and the artifacts of the behaviour that are transmitted from one generation to the next. Three things should be noted about this definition. First, culture does not refer to instinctive human responses, such as eating when you are hungry. Nor does it include the inventiveness that takes form as one time solution to problems. Second, this definition reflects a contemporary view of culture that emphasizes the integrative and learning function of culture. This definition also stresses the communicative aspect of culture through time, that is, the process of passing on values, beliefs, and artefacts from one generation to the next. Thus, culture can be viewed as the means and methods of coping with environment that are shared by a large group of people and that are passed

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from one generation to another. This sharing and then passing on is the result of finding effective means of dealing with common problems and circumstances. Culture includes both abstract and material elements. Abstract elements are the values, attitudes, ideas, and personality types, as well as the various combinations of these, such as religion, that can be used to characterize a large group of people. These abstract characteristics are learned overtime and are transmitted to succeeding generations. Material elements refer to those objects that are employed by a large group of people in meeting their various needs. As a result, in an advanced society, these take on many different forms. The word society refers to a collection of individuals who share a particular set of symbols and conduct their inter-personal and collective behaviour according to the prescriptions of that group of people. A culture is a way of life while a society is made up of people who live by its dictates. The process of absorbing or learning the culture in which one is raised is called enculturation or socialization. Acculturation refers specifically to the learning of another of another culture or sub-culture different from the one in which the person was raised. The social units with which an individual has most regular and intimate contact include the family, the prayer institution, and educational institutions; these social units have the greatest influences on culture values absorbed throughout life. The influence of all other social units is filtered by members of the family in the early years of the typical individual. Other human groups, particularly reference groups are also important transmitters of culture. These groups filter and modify the values of the broader culture to make them consistent with their group values. Basic Characteristics of Culture Some people believe that the essence of marketing focuses on culture and society because they perceive marketing as the delivery of a standard of living. Certainly those who characterize marketing in this way must be very interested in consumer behaviour. Only through studying the consumers interests and decision-making processes can appropriate goods and services be delivered. The notion that culture is an important determinant of behaviour has caused consumer analysts to examine the fundamental characteristics of culture in order to discover more about its dynamics. Five distinct characteristics, or dimensions, can be identified and described to facilitate understanding culture and its effect on consumer behaviour: (1) culture is learned; (2) culture is inculcated; (3) culture is a social phenomenon; (4) culture is gratifying; and (5) culture is adaptive. CULTURE IS LEARNED:

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Consumer behaviour is learned; it is not instinctive. Culture provides the consumer with a framework to recognize a set of stimuli and a set of responses appropriate to those stimuli. For example, consumers are not born with the idea that a particular type of food product will satisfy their hunger; they learn it from their culture. Cultural values learned early in life tend to resist change more strongly than those learned late in life. Fundamental values refer to the ultimate reasons people have for acting as they do; these are intangible and deal with basic aims, aspirations, and ideals. For example, self-oriented values include the right to life and the pursuit of happiness, physical and mental well-being, self-sufficiency, and the right to endeavour to shape ones own life. Once learned and accepted, these values resist change. The appropriate strategy for deeply ingrained, culturally determined preferences. It is commonly recognized that, although family and other social groups contribute most to the socialization process, marketing also can have significant impact on this process. CULTURE IS INCULCATED. To say that culture is inculcated is simply to say that culture is transmitted from generation to generation. This process is performed mainly by the immediate family, but other groups and institutions also contribute to it. Ethnic, educational, and religious institutions all participate in the passing on the values, customs, and artefacts from one generation to next. For example some religions prohibit the consumption of certain products and these prohibitions have a direct impact on the marketing of these products. The values, norms, and behavioural patterns transmitted are generally idealised. There is , however, considerable disparity between the idealised norm and the norm that is observed in practice. Thus, parents as a rule instil the importance of adhering to laws (idealised norm), yet the same parents may jaywalk, exceed the speed limit, or do some thing wrong. Minor violations of cultural values are permitted, expected, and, occasionally, encouraged, whereas major violations are perceived negatively and are subject to punishment, such as imprisonment. In a consumer behaviour context, such deviations may be less dramatic but, nevertheless, are important to analysts. Consider the example of a parent who stresses the importance of the performance features of a product, like a stereo, a then obviously buys one because it has a goodlooking cabinet. The emphasis on performance characteristics (the idealised norm) is generally more acceptable to society, but this is often not the basis for making a particular purchase decision. CULTURE IS A SOCIAL PHENOMENON Cultural values, habits, and patterns of behaviour are shared by the people living in a particular society. The values consumers have and the consumption behaviour they express are group properties; they are not distinctive to individual consumer. Culture has an effect on all values and behavioural patterns but particularly on those that are basic to social life, such as how to get along with others, the type of food to eat, how to dress, and how to earn a living. The systematic study of culture requires that the marketing

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strategists focus on groups or segments. Indeed, marketing strategy must be based on assumptions about large numbers of consumers representing sizable market segments. Thus, planning and directing of marketing operations must be based on similarities of behaviour that often result from culturally determined variables. CULTURE IS GRATTIFYING The basic function of culture is to satisfy the needs of the people adhering to its dictates. Only those values, habits, and behavioural patterns that satisfy human needs will be continued through time. Elements within a culture that cease to gratify needs usually become extinguished, at least in the long run. The notion that culture reinforces some responses serves as the basis for marketing decision-making. Strategist must recognise that the advertising used and the products offered for sale must focus on satisfying needs that society approves. CULTURE IS ADAPTIVE As indicated previously, culture is passed from generation to generation; yet this does not imply that culture is static or endowed with eternal life. Rather, culture adapts to the environment in which it operates and with which it has contact. In the past, culture change was unbelievably slow. More recently, however, vastly accelerated technological changes and the amazing capabilities of communication are reflected in comparatively rapid cultural adaptation, particularly among the developed nations. SUB-CULTURE A culture represents a loose agreement on the values, behaviour patterns, and symbols it upholds. There are, however, smaller groups within the larger society that have modified these ways of dealing with the environment and with persons enough to be at variants with the general living patterns. These smaller groups are referred to as Sub culture. More specifically, sub-culture influences refer to the norms and values of sub groups within the larger or national culture. Individual consumers may be influenced only slightly by membership in specific sub-groups or the sub-groups may be the dominant force on the personality and life style of the consumer. Some products may be favoured specifically by the persons in a particular sub-culture. However, because sufficient similarities exist among various sub cultures, many products are commonly accepted. The appeals of fast food counters demonstrates this kind of general acceptance. Among sub cultures there are a number of points of commonness that permit grouping of identifiable characteristics. Four types of sub cultures are described below: Nationality, Religious, Geography, and Ethnic.

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NATIONALITY SUB CULTURES Nearly every metropolitan area has within its boundaries groups that are relatively homogeneous and often distinctive products and/or consumption patterns become associated with the residents. Many times the media, primarily the newspapers, develop programmes for the markets. RELIGIOUS SUB CULTURES Religious sub cultures may exert considerable influence on those members who choose to conform closely to group norms. It is obvious from some examples that certain sub cultural beliefs and values actually restrict the market for a number of products. Many conditions can cause the influence of the sub culture to decline. Increased mobility, education, and income provide challenges to traditional activities and affect behaviour. However, the basic values of a sub culture may continue to have an influence on decision making for some time. GEOGRAPHIC SUB CULTURES Sub cultures develop within different geographic areas of a nation. The climate and religious and nationality influences may be highly interrogated with geographic influences. The proper understanding of the geographic characteristics may help the marketers to understand the consumer behaviour of different geographic areas. ETHNIC SUB CULTURES The four type of sub culture is based on ethnic or racial differences and is given a more extended analysis because of its importance in modern times. Ethnic sub cultures have been the focus of numerous research efforts in recent years. The understanding of the differences among different ethnic groups will help in more effective market segmentation and formulation of advertising policy. Different ethnic groups reacts differently to a common object. In India, politicians are taking advantage of this type of segmentations. SOCIAL CLASS AND GROUP INFLUENCE People generally tend to associate with those whom they consider to be like themselves. Frequently, they have similar occupation and levels of formal education and likely to live in comparable circumstances. Under such arrangements, fundamental values and viewpoints about life are shared. There

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is a particular social consciousness associated with these shared characteristics and a social status attached to them. A hierarchy among status groups has developed because some are regarded as having more social prestige and are, therefore, superior to the others. Historically, sociologists have been particularly interested in the phenomenon of social structure for its own sake. Consumer analysts, on the other hand, have become attentive to social stratification because it can significantly influence consumer behaviour. Social classes are relatively permanent and homogenous division in a society into which individuals or families sharing similar values, life-styles, interests, and behaviour can be categorised. Of course, it is much easier to provide such a definition than it is to operationalize it. There are no absolute boundaries separating social classes; consequently, there has been considerable disagreement as to where one class ends and another begins. Social classes are multidimensional, hierarchical structures that tend to restrict the behaviour of members of a particular social class. There is, a number of variablespower, prestige, influence, wealth, and incomecombine to create a social class. Social class is not the same as income, although it is often treated as such. Furthermore, people tend to rank, frequently on an intuitive basis without reference to specific people, the various strata or social groupings. This ranking into relatively homogenous groupings tend to restrict the behaviour of the individuals within each social class. SOCIAL CLASS DETERMINANTS Social classes take shape through what have been called determinantsthose characteristics that differentiate the members of one social class from another. Although there are a number of ways that can be used to determine a persons social class, there is considerable similarity among the various approaches. One of the more helpful approaches follows. It concentrates on five dimensions of social class. These five include occupation, personal performance, personal interactions, possessions, and value orientation

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Occupation: Many believe that an individuals occupation is the best single clue to his or her social

class membership. This appears to be true because a persons lifes work has a substantial influence on the way he or she lives. Personal Performance: An individual achievement is also related to social class status. Ordinarily that is concerned with occupational accomplishments, but it may involve non-job performance as well. These latter accomplishments include service to various community groups or even superior family role performance. Some social and community organisations demand a great deal of time and usually pay no salary to their members, but each position offers considerable public visibility and attention. Consequently, people active in community service develop the behavioural pattern expected to them by the public. These influences are of interest to the consumer analysts because they may affect purchasing patternsfirst, among the individuals who hold these positions and then, more important, among those who use public figures as reference. Possession: Personal possessions are often used as indicators of social status. Veblens theory of conspicuous consumption draws specific attention to the practice of some people who engage in buying to verify their newly acquired wealth. However, while possessions are necessary conditions for class membership, they are not sufficient. Further, the importance of possessions relates not only to amount of possessions that an individual has but also the nature of his or her choice. Value Orientation: Fundamental values are interpreted and applied differently; consequently the value orientations of individuals are important determinants of social class. The members of a social class tend to share a common set of abstract convictions that organise and relate many specific values, and therefore, it is intuitively appealing that social class should substantially affect consumption behaviour. For example, identifiable differences in beliefs among members of different social classes about family formation, child rearing, the home, and work affect market behaviour and may even provide a basis for market segmentation. Several of these differences have their impact on marketing strategy development. MEASUREMENT OF SOCIAL CLASS Several methods have been developed for measuring social class. The three principal methods are (1) Reputational, (2) Subjective, and (3) Objective. In considering these methods, it is important to remember that the marketers primary reason for measuring social class is to identify market segments that manifest similar consumption behaviour. The reputational method basically considers a social class as a social group characterised by common modes of thinking and member interaction. People are ranked into social classes by having

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individuals within a particular community group the people they know into various classes. While this method is useful in predicting social interaction in small and moderate sized communities, the variability in peoples perception of different social classes limits its usefulness, particularly in large cities. Subjective methods of determining social classes ask respondents to rate themselves on social class. Such methods have been used on occasions but are of limited use for consumer analysts for two reasons: ( 1 ) respondents tend to overrate their own class position and ( 2 ) respondents avoid the connotative terms upper and lower classes and thus exaggerate the size of the middle classes. The value of subjective methods to date appears to be minimal due primarily to the absence of a simple, selfadministered rating scale to identify social classes without simply asking the respondents his or her social class. Objective methods of determining social classes rely on the assigning of classes (or status) on the basis of respondents possession of some value of a stratified variable. The most often used variables are occupation, income, education, size and type of residence, ownership of possessions, and organisational affiliations. Most consumer research uses some objective methods for classifying because they yield quantitative results and obviate subjective interpretation. Objective methods can be divided into those that involve single indexes and those that use multiple indexes. REFERENCE GROUPS With the exception of those very few people who can be classified as hermits, most individuals tend to be involved with other people on a continuing basis. Like almost all-human behaviour, an individuals social behaviour and social relationships are often motivated by the expectation that they will help satisfy specific needs. For example, a person might become a volunteer ambulance driver to satisfy a need for community recognition. Another person might visit a health spa in the hopes of meeting compatible people to satisfy social needs. A third person might join a food cooperative to obtain the benefits of group buying power. These are just a few of the almost infinite number of reasons why people involve themselves with others. GROUP A group may be defined as two or more people who interact to accomplish either individual or mutual goals. The broad scope of this definition includes an intimate group of two neighbours who shop together and a larger, more formal group, such as a neighbourhood watch association, whose members are mutually concerned with reducing crime in their neighbourhood. Included in this definition, too, are more remote, one-sided, social relationships where an individual consumer looks to others for direction as to which products or services to buy, even though these others are largely unaware that they are serving as consumption-related models. TYPES OF GROUPS

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There are many ways to classify to groups, such as by regularity of contact, by structure and hierarchy, by membership, even by size. For example, it is often desirable to distinguish between groups in terms of their size or complexity. However, it is difficult to offer a precise point as to when a group is considered large or small. A large group might be thought of as one in which a single member is not likely to know more than a few of the groups members personally or be fully aware of the specific roles or activities of more than a limited number of other group members. In contrast, members of a small group are likely to know each member personally and to be aware of every members specific role or activities in the group. For example, each staff member of a college newspaper is likely to know all other members and be aware of their duties and interests within the group. In the realm of consumer behaviour, we are principally concerned with the study of small groups since such groups are more likely to influence the consumption behaviour of group members. PRIMARY VERSUS SECONDARY GROUPS If a person interacts on a regular basis with other individuals (with members of his or her family, with neighbours, or with co-workers whose opinions are valued), then these individuals can be considered as primary group for that person. On the other hand, if a person interacts only occasionally with such others, or does not consider their opinion to be particularly important, then these others constitute a secondary group for that person. Thus from this definition, it can be seen that the critical distinctions between primary and secondary groups are the perceived importance of the groups to the individual and the frequency or consistency with which the individual interacts with them. FORMAL VERSUS INFORMAL GROUPS Another useful way to classify groups is by their formality; that is, the extent to which the group structure, the members roles, and the groups purposes are clearly defined. If a group has a highly defined structure (for example, a formal membership list), specific roles and authority levels (a president, treasurer, and secretary), and specific goals (to support a political candidate, assist the homeless, increase the knowledge or skills of members), then it would be classified as a formal group. The Executive Council of the Gauhati University, with elected officers and members who meet regularly to discuss topics relating to the University, would be classified as formal group. On the other hand, if a group is more loosely definedif it consists, say, of four members who were in the same college sorority and who met for dinner once a month, or three co-workers who, with their spouses, see each other frequently then it is considered an informal group. From the standpoint of consumer behaviour, informal social or friendship groups are generally more important to the marketer, since their less clearly defined structure provide a more conducive environment for the exchange of information and influence about consumption related topics.

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MEMBERSHIP VERSUS SYMBOLIC GROUPS Sometimes groups are classified by memberships status. A group to which a person either belongs or would qualify for membership is called a membership group. The Pensioners Association of Assam (PAA) is an example of membership groups. Older adults are an important special market, and the PAA is a very large membership group that enjoys their trust. In contrast, a group in which an individual is not likely to receive membership, despite acting like a member by adopting the groups values, attitudes, and behaviour, is considered a symbolic group. For example, professional cricket players may constitute a symbolic group for an amateur cricket player who identifies with certain players by imitating their behaviour whenever possible (e.g., in the purchase of a specific brand of cricket glove or bat). The amateur does not, however,(and probably never will) qualify for membership as a professional cricket player because he has neither the skills or opportunity to compete professionally. Clearly, actual membership groups offer a more direct, and thus a more compelling, influence on consumer behaviour. In summary, we can say that small, informal, primary membership groups are of the greatest interest to marketers because they exert the greatest potential influence on consumer purchase decisions. CONSUMER-RELEVANT GROUPS To more fully comprehend the kind of impact that specific groups have on individuals, it is essential to examine six basic consumer-relevant groups: the family, friendship groups, formal social groups, shopping groups, consumer action groups, and working groups. THE FAMILY IN CONSUMER BEHAVIOUR The family as an institution has been receiving increasing attention from a broad spectrum of researchers and policymakers. Some of them question whether the family is in transition, in trouble, or even able to survive, while others convey an optimistic assessment of its future. However the changes in values and the traditional familial responsibilities, stability, composition, and roles are approached, it is evident that government, business, and the academic community have become more committed to studying the approximately 57 million living units defined as families. In focussing on the family as it relates to consumer behaviour, at least two perspectives may be used. First, the family may be viewed as an agent that influences the behaviour of its individual members. This involves an awareness of the effect that various beliefs, life-styles, socio-economic status, and patterns of interaction among members have an individual members market behaviour. The family is,

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therefore, seen as a reference group. The second perspective focuses on the family as a unique entity. The family is viewed as a unit that has specific identifiable characteristics and an existence beyond a simple summation of the behaviour or outlook of its individual members. The uniqueness of the consumption patterns of the family entity is often a product of the intimacy of shared concerns and priorities, and these results in behavioural patterns worthy of special study. Before these perspectives can be elaborated, it is well to consider several circumstances that are very likely to affect these influencing and consuming functions of the family. 1. The Womens Liberation Movement. Not only have the efforts for equal opportunity in employment and legal matters made an impact on family life in general, so has the magnitude of the number of women in the labour force bringing the demands of their new life-styles to the marketplace 2. The New freedom in Sexual Conduct. Persons who identify with this trend may have greater expectations and fewer inhibitions in seeking self-fulfilment generally. This pattern has fostered strong interest in personal hobbies, self-expression in clothing selection, and participation in sports such as racket ball and tennis. 3. New and Emerging forms of the Family with Different Perceptions of the Bearing and Rearing of Children. A declining birth rate, an increasing divorce rate, postponement of marriage, alternative living arrangements and a growing scepticism toward having children are among the issues surrounding the family. These also can have a measurable impact on consumer behaviour. For example, having children later in the life of family typically means bringing a child into a more affluent environment. The household will be better established and can commit greater resources to child-oriented spending. There are many ramifications of these conditions and trends. The shifts in household composition and size could have a substantial impact on the level of demand for a vast array of products and services including housing, education, and health care. The increase in the frequency with which families pay for services to carry out routine household tasks also means other changes in the marketplace. Several examples are more varied meal patterns and the use of professional house cleaners and lawn-care services. Much more could be said, but at this point it is sufficient to remember that these conditions do have some effect on the manner in which the family serves as an influencing agent and a unique consuming unit. In approaching the study of the family, it is also useful to identify and define several alternative configurations of the family. These include the nuclear family, extended family, family of orientation, family of procreation, and the household. This brief review draws attention to the nature and roots of family behavioural patterns that can arise from different interpersonal relationships. For instances, recent

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study of banking practices in a medium-sized community showed that the experiences of specific members of the extended family had a substantial influence on adults selection of their primary bank. FAMILY FORMS: There are important variations in what have been called families or family groups that must be differentiated for increased clarity and understood as offering overlapping circles of influence. First, the term family generally refers to a group of people who are related by blood, marriage, or legal adoption. Individuals who simply live together in an apartment or dormitory, as roommates are not considered a family in the customary use of the term. This general definition does not delineate the family entity sufficiently to permit identification of the influences and interactions that are important to the consumer analyst. Considerable clarification can be achieved by distinguishing among the following: the nuclear family, the extended family, the family of orientation, and the family of procreation. It will also be helpful to differentiate between a family and a household. Nuclear family refers to the immediate kinship group of father and/or mother and their offspring or adopted children who ordinarily live together. A temporary separation of a member does not dissolve this kinship. For example, a son or daughter away at college is still part of the nuclear family. The members of a nuclear family have considerable face-to-face contact on a regular basis. This living together and the intimate sharing that takes place over time are major characteristics of the nuclear family. It is also the family grouping that has been studied the most. The extended family includes the nuclear family plus other relatives, such as grandparents, uncles, aunts, cousins, and in-laws. As a focus of attention in terms of their possible influence on the family members behaviours or the behaviour of the family unit, there is a practical limit as to who is included for study. The extent to which a relative is considered a part of the extended family is essentially determined by the regularity and intimacy of the interaction with the family members. The family that one is born into or adopted into is called the family of orientation. This family group typically initiates the enculturation process that continues throughout life. The interpretation of family roles, various help patterns (exchange of money, advice, gifts, and services), and fundamental values are identified and passed on to off spring by this family. The family of orientation essentially begins with the nuclear family but ordinarily is expanded over time and becomes the extended family. The family of procreation is established when one marries; that is, this represents the formation of a new family unit capable of existence as a separate entity.

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All families are households; however, not all households are families. The term household refers to a living unit or entity for consumption purposes. A person living alone represents a separate, fully functioning living unit and is also considered a household. Nevertheless, a single person does not constitute a family because the term family is used to refer to at least two related people. Nor would two single men or women living together in an apartment be referred to as a family, although they do constitute a household. Generally, they are more permanent, demonstrate greater interdependency among members, and have historically assumed more significant roles in society than have non-family households. Furthermore, the nuclear family in particular is the optimum unit of study because of the following reasons. (1) The family is the accumulating unit, the inventory of acquisitions over time being a nuclear family inventory. The items accumulated include various possessions such as cooking utensils, furniture, books, an automobile, and some form of real estate. (2) The nuclear family is typically the decision-making unit in asset accumulation and consumption. (3) The nuclear family is more accessible for study than arte its competitors and more easily definable for purposes of study than is the household, for example, which may include lodgers who have little part in family acquisition. Although these points essentially draw attention to the family as a consuming unit, it is also important to recognize the impact of the family as a socializing influence on its members. Even though these two dimensions of the family are interrelated, it is helpful to separate them for discussion. Therefore, the next section will give specific attention to family influences on its members. FAMILY INFLUENCES ON INDIVIDUAL MEMBERS: Because of the nature of humans, a young person must be cared for and nurtured both physically and psychologically; most often this is handled in a family environment. Parsons and Bales contend that no society has found an effective substitute arrangement for the family. That is, the family continues to exist as a distinct unit. Because the socialization process begins at birth, the familys influence on the behaviour of the individual member can be significant. The family shapes its members personality characteristics, attitudes, and evaluative criteria, that is, the way its members look at the world and how they relate to it. To a large extent, this influence is informal and exerted on the individual over an extended period of time. Part of these influences includes the acquiring of a consumer outlook. As Boyd and Levy have contended, people are born with

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apparently insatiable needs and desires. From their first moments they are learning what specific things to consume and the ways to consume them, and, quite as important, what not to consume. In describing similar circumstances, Riesman and Roseborough stated that what children learn from their parents is a kind of basic set of domestic arrangements, for instance, a view of furniture as specific functional items to acquire rather than as a stylistic concept and, consequently, the need for home furnishings such as ranges, refrigerators, and television sets. The same individuals are likely to learn styles and modes of consumption from their peers. The amount of influence the family has will vary at different periods of its members lives. For example, a very young child may have relatively little contact outside his or her immediately family environment until the age of four or five years. Typically, the number of socialising agents increases substantially upon entering school with the regular non-family contact with teachers and schoolmates. It can be noted that the nuclear family plays two important roles. First, the interaction among family members helps shape individual personalities, evaluate criteria, and attitudes. Second, the nuclear family often performs a mediating or interpretation function in exchanges among members, particularly as these relate to resolving differences concerning the needs of the family as a whole. These two functions are stimuli or inputs into the individuals central control unit are subject to the complex processes of exposure, attention, comprehension, and retention, as such; they have varying degrees of influences on an individuals psychological makeup. One example of these family influences in action is the impact that a familys social class can have on its life-style and, subsequently, on its members buying behaviours. The differences that arise from social class membership basically are reflected in variation in values, interpersonal attitudes, selfperceptions and daily life routines. A brief reference to each of these four factors will illustrate their possible effect on individual family member behaviour and some marketing implications. VALUES Values are deeply internalised personal feelings that generally affect ones behaviour and judgements. The family plays an important role in the development of personal values, which can vary across social classes. For example, some research suggests that people from low socio-economic classes value personal advancement and self-sufficiency less than do middle class people. This difference can have a significant impact on an individual family members personal desire for education, his or her motivation while in an educational environment, and even his or her attitude toward providing financial support for education as a taxpayer. Furthermore, any such influence on educational attainment may have

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a life-long effect on an individuals market behaviour. For example, better-educated people are generally more astute shoppers. They are also more likely to show an interest in the arts, the public park system, and sports.. The value placed on time as a scare resource also varies from one social class to another. The middle class has generally placed the most value on the careful planning and budgeting of time. This is consistent either the high achievement orientation of middle class people. The high valuation of time also affects consumer behaviour. For instance, the willingness to engage in pre-purchase search for information, the specific sources used, as well as ones interest in labour-saving products are influenced by the perceived value of a persons time. The role of values in the market behaviour of consumers has not received much attention. Adding the knowledge of consumer value orientations, especially in the family framework, to the already used demographic and psychographic (life-style) variables could help marketing managements operations become more effective. Some of the most promising avenues for research and application of the knowledge of values include market analysis and segmentation, product planning, promotional strategy development, and public policy formulation. For example, market identification might include a segment made up of consumers who highly regard imaginativeness, an exciting life-style, and independence. Such a grouping could be defined as a market segment of consumers concerned with individuality and self-expression. These consumers may be more receptive to products that can be tailored to their individual desires though the use of added accessories and styling options. Certainly, automobile producers have provided such product flexibility, as have some clothing manufacturers. INTERPERSONAL ATTITUDES Interpersonal attitudes refer to the predisposition of family members to interactions among themselves as well with those outside the family. Differences in interpersonal attitudes exist across social classes and shape individual family member behaviour. For instance, middle class husbands and wives are more likely to jointly pursue various family functionssuch as decision making in chid rearing, family budgeting, and expenditures for major purchasesthan those in lower class families, As a result, a middle class woman may be more likely to postpone decision until she has obtained her husbands views than is a woman from a lower socio-economic class. Also, middle class families generally relate socially to more people than do lower class families. This includes having more non-family members into the home for meals, entertainment, and socializing.

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This kind of interpersonal interaction has a long-term effect on children and a more immediate impact on other members market activities. Middle class individuals are more likely to seek information from others when making a major purchase decision than are individuals from lower social classes. This latter behavioural pattern may substantially alter the information base from which one operates in his or her pre purchase deliberation. SELF PERCEPTION Levy found that the way one thinks of or perceives him or herself also varies by social class. For instances, lower class women understand their own bodies less well and have more taboos about them than do middle class women. Lower class women were also found to have more traditional views of interpersonal relations. Masculinity and physical strength were found to be of more concern to lower class men than they were to middle class men. Lower class people generally have less self-confidence and feel less in control of their own destiny. Consequently, they are more likely to believe that if they get ahead, it is the result of chance or luck rather than the result of personal effort. These views are shared among family members and are passed on from one generation to the next. Their influence on family members market behaviour can take on many forms. For example, such a prevailing family view may lead to a discouragement of a members efforts for self-improvement through technical training or enrolment in a self-development course such as that offered through adult education programs. It may also encourage a greater interest in gambling such as that, which is available through state-sponsored lotteries. DAILY LIFE ROUTINE Each family develops its own routine to cope with the daily demands placed upon it. In fact, an interesting exercise for each of us is to attempt to set down in some detail the way our family handles the responsibilities of a typical day. In most families, this routine varies between weekdays and the weekend and, to some extent, by season. The record of such a routine would at least include the time when family members arise; how meals are prepared and eaten (e.g., in some families the meals prepared jointly while more typically this responsibility falls upon one member-the wife); when members leave for work, school, other regular activities; how much time is spent apart, together, and in what activities; and how the family closes the day. The word routine is used to imply a regular pattern. The awareness of this regular pattern continues over time and, coupled with what is known about learning theory, strongly suggests that the daily family life routine can have an important impact on the individual family members behaviour. The

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strong interest of other family members in certain sports, for example, may shape ones interests also. Furthermore, what food is served at home and how it is served affects younger members eating patterns outside the home and their meal preparation and entertainment style when they establish their own families later in life. CONCLUDING COMMENT As an individual interacts with other family members, he or she simultaneously influences these individuals as he or she is being influenced by them. Furthermore, no other single group or individual ordinarily has as many opportunities for shaping a persons behaviour as does his or her family. As mentioned earlier, the nuclear family is a primary group with frequent face-to-face contact among its members. It also shares a common pool of financial resources as well as consumption needs. Therefore, family members tend to be more alike in their thinking and behavioural patterns than they would be if they were not in the same family. FAMILY AS A BUYING AND CONSUMING ENTITY The family, particularly the nuclear family, is a very significant economic and social unit in most societies. Personal goals and expectations are brought together, shared, and shaped by family members in such a way that the family itself takes on a set of characteristics that reflect those of its members but which, nevertheless, are unique to it. Decisions regarding the purchase and use of goods and services are made by a family through the interaction of its members. Consequently, it can be said that family decision making, similar to that of individuals who act in their own behalf, can be characterized by decisionprocess model. Families and family behaviour have studied extensively by social scientists in many disciplines including sociology, social psychology, anthropology, home economics, consumer psychology, economics, and marketing. However, as Ferber has pointed out, relatively little attention has been given to bringing together the various dimensions of consumer behaviour within the framework of the family to provide a more realistic explanation of economic behaviour. Alternative Models Ferber has developed what he calls a simplified decision-making framework with specific attention given to family saving and spending. This is shown in figure-3.3 showing Interrelation of Saving and Spending Decisions. The basis for the framework is the division of family economic decisions into

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two typesfinancial and non-financial. Those decisions in the financial grouping include decisions dealing with money management, savings, spending, and asset management. Because this framework was used to discuss financial decisions, all other decisions that a family may make are grouped together under what is called non-financial. One can quickly note in Ferbers framework that both financial and non-financial decisions are affected by the available financial resources of the family, by the objectives or goals of the family, and by the attitudes of the family members. The familys objectives and attitudes relate to wide variety of topics and, therefore, encompass both the material and non-material goals of the family in both short and long run. Attributes include expectations and outlooks of the different family members on economic and related issues as well as their system of preferences and value judgements concerning alternative type of economic behaviour.

Family Developments

Economic and Political Events

Objectives

Attitudes

Resources

Non-financial Decisions Family Size Work Vs Leisure Other

Financial Decisions Money Management Spending Behaviour Saving Asset Behaviour Management

Fig3.1: Interrelation of Saving and Spending Decisions This framework takes note of the fact that family decisions in some instances are dominated by influences that are external and not under familys control. In particular, these include economic and political events in the community in which the family lives and personal experiences of the individual family members such as births, deaths, marriages, and accidents. Other, more detailed models of family decision-making have been developed. One of the recent contributions has been made by Sheth. He offers a comprehensive model of family decision making in consumer behaviour. The model is a representation of his attempt to specify the nature of family decision

33
making in consumer behaviour and to bring together the findings of various social scientists in a comprehensive representation. In Sheths model the consumption of a family is classified as that of (1) the individual members, (2) the family as a whole, (3) the household unit. Examples of individual members consumption include their use of shaving cream, which may just be used by the father (husband), nail polish by the mother (wife), and comic books or toys by the children. However, various food items and hand soap, for example, are consumed by everyone in the family. Furthermore, certain goods and services (e.g., utilities such as water, electricity, and natural gas) as well as such items as paints, wallpaper, and the living room furniture are used by the family indirectly in the process of living together in the same residence. The latter fit into Sheths third category of consumption. This approach to classifying family consumption points out that the demand for goods and services may be collective and direct, collective and indirect, or individual. In Sheths theory, family consumption is considered to follow family buying decisions. This indicates that gifts, rentals, and acquisitions by means other than buying are not explicitly taken into account. This seems appropriate because these latter forms represent a small proportion of goods and services consumed by most of the families. Family buying decisions are identified as either autonomousmade by a single memberor jointmade by at least two members of the family. The theory as a whole has four major subsections that can be observed in the model: 1. 2. 3. 4. Individual members of the family, their predispositions, and the underlying buying motives and evaluative beliefs about products and brands. Determinants of the motives and beliefs of the individual members that are both external and internal. Determinants of autonomous versus joint family decision-making. The process of joint decision making, with consequent inter-member conflict and its resolution. of focusing on family as a unique consuming unit. The Family as a Dynamic Entity For many reasons, family composition changes over time, and this may substantially alter the family needs, its decision-making process, and its market behaviour (where to shop and what to buy). One way of viewing these changes that has proven helpful is through what has been called the family life cycle. A common representation of this follows below. It should be noted, however, that in this categorisation there are three listings included here as a representation of the usual format, although they are not families but non-family households. Furthermore, these three non-family households represent pre-and post-family entities.

5. Although the Ferber and Sheth models differ substantially, each draws attention to the importance

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(1) Bachelor State: young single people not living at home (non-family household) (2) Newly Married Couples: young with no children (3) Full Nest I: young married couples with youngest child under six (4) Full Nest II: young married couples with youngest child six or over (5) Full Nest III: older married couples with dependent children (6) Empty Nest I: older married couples, no children living with them, household head in labour force. (7) Empty Nest II: older married couples, no children living at home, household head retired (8) Solitary survivor in labour force (non-family household) (9) Solitary survivor, retired (non-family household) This scheme takes note of the fact that changes in family composition are likely to be more important in terms of market behaviour than age or simply the aging process of the family members. To illustrate the importance of family composition to consumer behaviour, a brief summary is presented of the major dimensions of four of the above listed stages in the life cycle and some of their marketing implications. BACHELOR STAGE Although earnings are low in relation to what they will be later in ones career, this income is subject to few rigid demands; so consumers in this stage have substantial discretion over how they spend their money. Part of this income is typically used to purchase a car and basic household equipment. People at this stage also tend to be more fashion-and recreation-oriented, spending a substantial proportion of their income on clothing, entertainment, food away from home, vacations, leisure-time pursuits, and other products and services involved in the mating game. Recent trends suggest that this stage is extending over a longer period of time. Furthermore, older singles are increasingly purchasing items formerly bought almost exclusively by married couples, such as single-family houses and all the household items necessary to furnish them. NEWLY MARRIED COUPLES Newly Married Couples without children are usually better off financially than they have been in the past or will be in the near future because frequently both husband and wife are employed. To illustrate the economic importance of changes in the family life cycle, attention may be given to the results of

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establishing this new family, that is, the movement from stage one, Bachelorhood, to stage two, Newly Married-no children. FULL NEST II At this stage, the youngest child is six or older and in school; the husbands income has ordinarily improved; and if the wife has not been employed, she often returns to work outside the home. As a result, the familys financial position improves. Consumption patterns during this time continue to be heavily influenced by the childrens needs. Consequently, a number of different products and services are purchased in relatively large quantities, including doctors services and medicines, tennis shoes, laundry detergent, snack foods, bicycles, music lessons, and school supplies. EMPTY NEST II By this time the family head has retired and so the couple usually suffers a substantial reduction in income. Although it is increasingly popular for a retired person to take on some part-time work, it ordinarily does not make up the differences between pre retirement income and retirement income. Expenditures on the home and related items are scaled down, and apartment living may begin. Unfortunately, a sizable number of the couples in this group will be forced to live at a level approaching subsistence. Furthermore, health concerns receive more attention, and some even move to more agreeable climates or retirement centres in their area. CONCLUDING COMMENT AND MARKETING IMPLICATIONS: The words typically and ordinarily have been used throughout this last section on the family life cycle. This does not mean that all families fit neatly into one of these developmental stages. In fact, everyone knows of other configurations of family life; we may even have grown up in one. One of these other family groupings is the single-parent family with young children. To a large extent these families needs and behavioural patterns follow those in the Full Nest I stage. However, to meet these needs the remaining parent will likely be employed and probably make more extensive use of day care facilities and babysitters than would be the case if both parents were in the family. Also, in many such families the expenditures for childcare are substantial and, therefore, force the family to live at a somewhat lower level than would be necessary if it had two adults present. The special needs and desires of families at each stage of the family life cycle offer unique market opportunities; that is, these needs and desires offer opportunities for governmental agencies, nonprofit organisations, and business to be of service. Specifically, the life cycle concept can be used to:

36 1. Identify Target Markets. Studies of consumer expenditures reveal that the consumption of many
products and services varies significantly by stage in the family life cycle. This provides a means of identifying specific groups of consumers within the broader consumer market that have the greatest interest in certain products or services. As a result, marketing efforts to provide for these needs and desires can be more effective and efficient. For instance, with a target market clearly identified, products can be tailored to the consumers requirements, distribution provided in convenient outlets, and advertising undertaken in media that reach the target market with a minimum of wasted coverage.

2. Forecast Demand. It is possible to obtain consumption rates of products and services broken
down by life cycle, age, and other demographic data. By identifying the consumption patterns of the family segments that are predicted to expand significantly, it is possible to single out product and service groupings that are likely to enjoy above-average growth rates in the future.

3. Family Roles Structure. Family role structure refers to the behaviour of nuclear family members
at each stage in the decision making process. One means of gaining an understanding of family role structure is by studying the various forms of role specialisation that occur in families. Role specialisation within the family can affect both the decision making process and the decision made. This specialisation takes a number of forms: two are used here to illustrate the importance of role specialisation and the nature of its influence. First, role dominance will be discussed, followed by the gatekeeper concept. Role Dominance. Role dominance refers to the extent to which one member of a family has greater influence in the family decision making process than do other members. Typically, husband-dominant or wife-dominant decision-making has been the focus of attention. These are decisions involving both spouses but where the ideas of one have greater impact. There have been a number of studies conducted to identify patterns of dominance and the circumstances that foster such dominance. Marketing and advertising managers are particularly in determining which spouse has the most influence in various types of decisions so that promotional strategy can be oriented accordingly. A persons background can contribute to role dominance. There is evidence to indicate that the degree of dominance by one member can vary among groups with differing cultural backgrounds. Also, several researchers have found evidence to suggest that husbands dominance appears to be more likely when the husband is successful in his occupation. The wifes influence increases with age and is generally greater if she is employed. It is important to note that existing evidence also shows that dominance by one family members depends upon the particular type of decision being made; that is, a family cannot ordinarily be classified as being wife dominant or husband dominant, because

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when confronted with certain decisions the wife will have greater influence, and in other situations the husband will be dominant. Gatekeeper Concept: Another form of role specialisation is what a number of consumer analysts have called the gatekeeper concept. The gatekeeper refers to an individual who acts as a valve and filter affecting the flow of information coming into the family. In a number of families the homemaker still illustrates this concept at work. The fact that she is at home more than other members, as well as her concern for the general well-being of the family, puts her in a position to receive, screen, and sort incoming messages. Salespeople who call during the day are also subjected to her gate keeping action. In business setting, a mangers secretary may function in a similar capacity. To the consumer analyst, such role specialisation must be identified and understood because it can have a substantial impact on consumer behaviour Questions for discussion 1. Culture is something over which marketers have no control: therefore, the marketing managers task is to identify basic cultural values and consumption patterns in light of the products his or her firm distributes. Evaluate the statement. 2. 3. 4. 5. Distinguish between beliefs, values, and customs. Illustrate their importance in the study of consumer behaviour. What do you understand by the term culture? What are the different sub-groups of culture? Prepare a list of formal and informal groups to which you belong and give examples of any purchases for which each may have served as a reference group. How does the family influence the consumer socialisation of children? What role does television advertising play in consumer socialisation?

UNIT-3. PERSONAL AND PSYCHOLOGICAL FACTORS IN CONSUMER BEHAVIOUR.

PERSONALITY: Personality is a frequently used and reasonably familiar term. Most people have at various times characterized someone as having a pleasant personality or, perhaps, an obnoxious personality. Marketing strategists fascination with personality stems from the belief that this consistent mode of behaving will enable marketers to understand consumer behaviour. The assumption is that if they really understand a

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consumers personality, they will understand why a person consumes the way he or she does and then, perhaps, they can effectively influence that consumption behaviour. Actually, there is little agreement on what the components of personality are and how these components of personality are and how these components become organized into a meaningful whole. Thus, an examination of the major personality theories is essential to acquiring an appreciation of the potential contribution of this concept. PSYCHOANALYTIC THEORY: Psychoanalytic, or Freudian, theory posits that personality is composed of three systems of interdependent psychological forces or constructs: the id, the ego, the super ego. The interaction of these three systems determines the persons behaviour. The id, the original source of all psychic energy, seeks to achieve immediate gratification of all biological or instinctual needs. Thus, a consumers instinctive cravings, needs, and desires originate in the id. If all the pleasure seeking impulses emanating from the id were openly expressed, the consumer would quickly violate societys norms, rules and regulations. Indeed proponents of the psychoanalytic theory would content that uncontrolled behaviour that directly satisfies all instinctive needs and desires is inherently bad. The ego functions to control and direct the ids impulses so that gratification can be achieved in socially acceptable manner. The ego controls behaviour by selecting the instincts that will be satisfied as well as the manner in which they will be satisfied. This is accomplished by integrating the often-conflicting demands of the id and the superego. The superego, the internal representative of the societys norms and values, acts to inhibit the impulse emanating from the id that would be contrary to societys norms and values. Thus, superego can be thought of as the consumers conscience or moral arm that serves to direct behaviour. According to the psychoanalytic theory, the id is entirely unconscious and the ego and superego partially unconscious, resulting in an unconscious determination of behaviour. Psychoanalytic theory has thus provided the conceptual basis for motivational research. Consumer behaviour, according to the motivational researchers, is the result of unconscious consumer motives that can only be determined through the use of indirect assessment methods that include a wide assortment of projective technique. The individual focus characterizing psychoanalytic theory is frequently inappropriate to the marketing analyst whose interest is in groups or segments of consumers. Indeed, even if individual information could be obtained, its application by the marketing strategist is not readily apparent. While psychoanalytic theory has been extensively and justly criticized, few would deny that it had a tremendous impact on marketing in the 1950s and 1960s and, to a lesser extent, in the 1970s. SOCIAL PSYCHOLOGICAL THEORY:

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Social psychological theory developed as a reaction to the psychoanalytical theorys rigid adherence to the biological determinants of personality. Social psychological theorists contend that social variables, not biological ones, are the most important determinants of personality. Humans are conscious of their needs and wants; consequently, their behaviour is directed towards satisfying them. The following are the representative needs considered to be basic determinants of personality by the proponents of the Social psychological theory: the striving for superiority, freedom from loneliness, security, satisfying human relationships, and coping with anxiety. One example reflecting this orientation suggests that consumer behaviour results from three predominant interpersonal orientations ---- Compliant, Aggressive and Detached. A psychological instrument-- the CAD scale has been developed to measure these three basic orientations. The compliant person wants to be appreciated, wanted, loved, and included in the activities of others. The compliant person is so other-oriented that he or she becomes overgenerous, over grateful, and over considerate. For example, the compliant person seeking reassurance of acceptance by others is likely to seek the security afforded by personal grooming products. The aggressive person seeks success, prestige and admiration of others. The aggressive person values other people only if they are useful to achieving a goal. He or she considers everyone to be motivated by self-interest and shows concern for others only to cover up his or her goals. For example, the aggressive person seeking a separate identity will be more concerned with distinctive brands of personal grooming products. The detached person seeks freedom from obligations, independence and self-sufficiency. The detached person does not want to be influenced or to share experiences with others; rather he or she seeks to maintain or establish an emotional distance from others. For example, the detached person will probably not be concerned with products (such as personal grooming products) or brands that ensure acceptance by others. TRAIT-FACTOR THEORY: According to trait-factor theory, an individuals personality is composed of a set of traits or factors. The relatively enduring and distinctive ways in which consumers differ from one another are referred to as traits. Therefore, traits can be considered consumer difference variables. Proponents of trait theory contend that consumer have relatively stable traits that produce similar effects on behaviour, regardless of the situation. Furthermore, although a trait is common to many individuals, there is considerable variation in the degree to which one consumer expresses that particular trait. Three critical assumptions serve as the basis for the use of trait-factor theory. They are: (1) Traits are common to many individuals and vary in absolute amounts among environmental situation. (3) A consistent functioning of personality variables is predictive if a wide variety of behaviour. individuals. (2) Traits are relatively stable and exert fairly universal effects on behaviour regardless of the

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PERSONALITY AND PRODUCT CHOICE: The consumer analysts fascination with personality stems from the belief that a consumers personality significantly influences consumer behaviour. Many consumer analysts would contend that consumption patterns are an expression of a consumers personality and, consequently, knowledge of a consumers personality is strategic to the marketing decision maker. Consumer analysts have made numerous attempts to demonstrate the relationship between personality and product or brand choice. For example, an attempt to demonstrate the relationship between personality and brand of automobile purchased proved unsuccessful. There is, however, some indication that personality is related to the type of automobile owned; that is the owner of a convertible appeared to be more aggressive, impulsive, sociable, and somewhat less stable and reflective than the owner of a standard or compact car. A number of marketing analysts also have found a relationship between personality and product use. For example, there appears to be a tendency for women who are enthusiastic, sensitive, and submissive to be more prone to purchase private brands than women who do not have these traits. In general, marketing analysts by employing sophisticated analytical techniques have found that a relationship exists between personality and certain types of products (for instance, convenience products). Thus, even though the unsuccessful attempts to relate personality and consumer behaviour outnumber the successful ones, the consumer analysts interest in personality continues to be strong. IMPLICATIONS OF PERSONALITY FOR MARKAETING STRATEGY: In order to make a product effective, the marketing manager must frequently segment the market; that is, the marketing manager must adapt his or her marketing effort to the demands of relatively homogeneous groups that make up the market. Traditionally, marketers used such demographic dimensions as age, income, occupation, and social class to identify consumer groups. Many marketing managers, however, contend that demographic variables lack the richness needed to accurately focus marketing efforts. The speculation is that personality captures much of the richness not present in demographic variables. Most attempts to base marketing strategy on personality have not been unequivocally successful. In order for personality information to aid the marketing strategist, a few basic conditions must prevail. First, consumers with common personality dimensions must be homogeneous with respect to such demographic factors as age, income, and locations so that they can be communicated with economically through the mass market. Age and Life Cycle Stage

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Demographics generally refer to various, relatively apparent, descriptive characteristics of a group of persons such as their age, sex, ethnic origin, education, and income. These data are ordinarily more readily available than information on personality traits or level of intelligence. Age pattern and life cycle stage of society determine the future demand and buying behaviour pattern. The recent slow aging process of the society will most certainly be reflected in aggregate consumption patterns as well as in expressed interests and attitudes. Knowledge of the life cycle stage of a society and age provide a great opportunity to predict buying behaviour of that society. Despite all these opportunities to anticipate future changes in consumption patterns resulting from the aggregate population aging process, the logical and readily apparent trends may never happen. Great care must be taken to continue to monitor the impact of such changes on consumer market behaviour. It could be very costly to rely strictly on historical consumption patterns related to age. Occupation and Economic Circumstances: The other major factors to be studied in the field of consumer behaviour are the occupation of the individuals and the economic circumstances in the society. Many believe that an individuals occupation is the best single clue to his or her social class membership. This appears to be true because a persons lifes work has a substantial influence on their purchase decisions and the way he or she lives. Occupation may also be ranked according to the prestige, honour, and respect associated with them by the members of the society. Because of all these factors and for maintenance of the social position they enjoy, consumers adopt a certain type of buying behaviour. However, all these things are determine by the economic circumstance. Different levels of economic condition will have a substantial effect on the consumers buying decisions. Only in some exceptional cases, some individual might refuse to adapt themselves to the changing economic circumstances. The classical economists of the nineteenth century postulated a view of consumer behaviour that is still present in contemporary theory, although it has been modified. The basic assumptions are that an individual has complete knowledge of his or her wants as well as all available means of satisfying these wants. In addition, personal preferences are assumed to be independent of the environment at the time in which choice is made as well as unlimited, insatiable, and consistent. The buying decision, then, is simply one of the careful allocations of resources to maximize utility or satisfaction. Some of the most comprehensive models of consumer behaviour yet developed rely upon concepts used earlier by economists. Mundell, in his book Man and Economics states, The act of choice is the act of making decision. A chooser is a decision maker. He confronts aspirations with limitations, preferences with opportunities, intentions with resources. Life-style Concept:

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During the 1960s, a new concept called Life-style began to take shape. The concept of lifestyle resulted from a merging of the objectivity of the personality inventory (trait-factor theory) with the rich, consumer oriented, descriptive detail of the qualitative motivation research investigation (psychoanalytic theory). Although there are numerous definitions of life-style, there is general agreement that life-style refers to the patterns in which people live and spend money and time. Life-style embraces a wide range of content including activities, interests, opinions, needs, values, attitudes, and personality traits. Life-style influences on Consumer Decisions: Life-styles are learned by individuals as the result of many influences such as culture, social class, reference groups, and the family. More specifically, however, life-styles are derivatives of consumers personal value system and personalities. Thus, there is great overlap in meaning among the terms values, personality, and life-style. Life-style can be considered a derivative concept combining the influence of personality and social values that have been internalised by an individual. The theory of life-style is based on a theory of human behaviour proposed by George Kelly, which states that people try to predict and control their lives. To do this, people form constructs, or patterns, to construe the events happening around them and use such constructs to interpret, conceptualise, and predict events. Some persons have constructs or patterns for interpreting their universe that are different from other individualsaccounting for differences in life-styles. Kelly noted that this construct system not only is personal but also is continually changing in response to a persons need to conceptualise cues from the changing environment to be consistent with his or her personality. The life-style concept includes variables such as income, life cycle, education and other demographics. That is, the measurement of life-style includes measures of peoples activities in terms of ( 1 ) how they spend their time; ( 2 ) their interests, what they place importance on in their immediate surroundings; ( 3 ) their opinions in terms of their view of themselves ( Self Concept ) and the world around them; and ( 4 ) some basic characteristics such as their stage in life cycle, income, education, and where they live. Self-concept: The way individuals perceive themselves has great relevance for marketing managers. People will attempt to purchase items that fit the interpretation they have of themselves or that will improve their self-concept.

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This notion of self-concept involves the attitudes and perceptions one uses to define his or her personhood. The self is considered to have five components: The first component is an organized set of motivations. The second component of the self is a series of social roles to which the person is committed, along with the knowledge of how to play them. Social roles are clusters of norms that are related to particular positions that a person occupies. The third component of the self is a more general set of commitments to social norms and their underlying values. The fourth component of the self is a set of cognitive abilities, including ability to create and understand symbols, which guide response to the intended meanings of others in social interaction and provide a map of the physical and social setting in which the person finds himself. The fifth and final component of the self is a set of ideas about ones qualities, capabilities, commitments, and motives--a self-imagethat is developed by the individual in the course of his socialization. Reference Group: Although the impact of the group has long been recognized, confidence in the ability of group theory to explain consumer attitudes and behaviour has been shaken by the reporting of contradictory evidence. Confidence in the basic force, however, has been renewed by the development of reference group theory. Reference group theory was developed as a result of the recognition that not all groups to which an individual belongs exert the same influence or hold the same relevance for him or her. In fact, some groups of which the person is not even member may be of considerable influence. Psychological Factors: Psychologists and marketing people alike have tried their hands at classification of factors affecting consumer behaviour and have devised lists, some of which are exceedingly long. Abraham Maslow, whose thinking is based more on an intuitive than on an empirical foundation, has significantly contributed in this field. MOTIVATION: Maslow hypothesizes that motives are organized to establish priorities and hierarchies of importance. Through this means, internal conflict is avoided by one motive taking precedence over another. The following classification of different motivational forces was suggested, proceeding from the lowest order to the highest:

1. Physiological: the fundamentals of survival, including hunger and thirst. 2. Safety: concern over physical survival, ordinary prudence which might be overlooked in striving
to satisfy hunger and thirst.

3. Belongingness and love: striving to be accepted by intimate members of ones family and to be an
important person to them. This also includes non-family members.

4. Esteem and status: striving to achieve a high standing relative to others, including desires for
mastery, reputation, and prestige.

44 5. Self-actualisation: a desire to know, understand, systematize, organize, and construct a system of

values. Three essentially different categories are comprehended in this classification: ( 1 ) motives related to survival needs, ( 2 ) motives related to human interaction and involvement, and ( 3 ) motives related to competency and self. Each higher order of motive will not function until lower levels are satisfied, at least to some degree. The hungry person will care little about understanding nuclear physics. Undoubtedly, some motives in each category are never fully satisfied and thus remain continued sources of problem recognition. The ordered relationship of motive strength (prepotency) is of conceptual value. It has been verified that prepotency is reflected in consumer buying to the extent that previously ignored desires often exert themselves only after a purchase has satisfied a predominant motive. A consumers motives are integrated by his or her self-concept into a purposeful pattern that is reflected in purchasing behaviour. To understand the significance of motivation, it should be stressed that purposeful behaviour is motive-satisfying behaviour. The implication of this premise is that motive patterns are not likely to be changed through persuasive activity of any type, especially that undertaken by the commercial marketers. One essential task for marketing research, therefore, is to uncover dominant motives and thereby provide clues for the development of products and sales appeals that will be regarded as motive satisfying by the consumer. PERCEPTION: Perception can be described as how we see the world around us. Two individuals may be subject to the same stimuli under apparently the same conditions, but how they recognize them, select them, organize them, and interpret them is a highly individual process based on each persons own needs, values, expectations, and the like. The influence that each of these variables has on the perceptual process, and its relevance to marketing, should properly be examined. Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to any of the senses. Example of stimuli (i.e., sensory inputs) includes products, packages, brand names, advertisements, and commercials etc. Sensory receptors are the human organs (the eyes, ears, nose, mouth, and skin) that receive sensory inputs. These sensory functions are to see, hear, smell, taste, and feel. All of these functions are called into playeither singly or in combinationin the evaluation and use of most consumer products. The study of perception is largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce a private picture of the world.

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SUBLIMINAL PERCEPTION: People are also stimulated below their level of conscious awareness; that is, they can perceive stimuli without being consciously aware of the stimuli in question. The threshold for conscious awareness or conscious recognition appears to be higher than the absolute threshold for effective perception. Stimuli that are too weak or too brief to be consciously seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception because the stimulus is beneath the threshold, or limen of awareness, though obviously not beneath the absolute threshold of the receptors involved. (Perception of stimuli that are above the level of conscious awareness is called supraliminal perception) DYNAMICS OF PERCEPTION: Human beings are constantly bombarded with stimuli during every minute and every hour of every day. The sensory world is made up of an almost infinite number of discrete sensations, which are constantly and minutely changing. According to the principles of sensation, such heavy intensity of stimulation should serve to turn off most individuals, as the body protects itself from the heavy bombardment to which it is subjected. Otherwise, the billions of different stimuli to which they are constantly exposed might serve to confuse them totally and keep them perpetually disoriented in constantly changing environment. However, neither of these consequences tends to occur, because perception is not a function of sensory input alone; rather, it is the result of two different kinds of inputs that interact to form the personal picturesthe perceptionsthat each individual experiences. One type of input is physical stimuli from outside environment; the other type of input is provided by individual themselves in the form of certain predispositions, such as expectations, motives, and learning based on previous experience. The combination of these two very different kinds of inputs produces for each individual a very private, very personal picture of the world. Because each person is a unique individual, with unique experiences, wants, needs, wishes, and expectations, it follows that each individuals perceptions are also unique. This explains why no two people see the world in precisely the same way. LEARNING The learning process is fundamental to most aspects of consumer behaviour; consequently, it is an extremely important topic to understand. Historically, much of the research that focused on learning as a formal process concentrated on simple, mechanical learning. This typically included what have been called classical conditioning and instrumental conditioning. Classical conditioning theory had its origin in the work of Pavlov and is often exemplified by referring to the salivation of a dog at the sound of dinner bell. In a learning situation such as this, the relevant action follows some triggering event. In instrumental

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conditioning the reverse is true. The sought response or action precedes what is called the conditioning stimulus. In a consumer behaviour context, instrumental conditioning has been called trial-and-error learning; that is, a consumer recognises a personal desire for a particular product or service and proceeds to determine the most preferred one by trying in turn what appear to be reasonable alternatives. It is not unusual to find consumers using this method of selection when buying such products as lotions, toilet soap etc. Most of the work in both classical conditioning and instrumental conditioning has involved experimental psychologists using various animals, particularly rats. The assumption made by these researchers is that the learning process in its simplest form occurs in all species, including human. Stated more simply, it is basically the same wherever it is found. However, the more complex process of symbolic learningthe involvement of what has been called thinking or ideationis unique to human. THE LEARNING PROCESS: There are many definitions of learning, but one in particular is most appropriate to the subject of consumer behaviour. Learning is defined as those changes in responses and response tendencies that result from the effects of experience. This definition acknowledges that learned behaviour must include changes in attitudes, emotions, evaluative criteria, and personality as well as the more easily observed variations in physical behaviour that have taken place over time due to individual experience. Some of these changes are often difficult to detect. It should be noted that the definition of learning that is being used excludes changes in behaviour and response tendencies resulting from physiological factors such as natural growth, deterioration due to the aging process, fatigue, or drugs. Of course, it is quite appropriate to take these physiological factors into consideration when one is attempting to affect the learning process. Cognitive development theory assumes that children are active participants in their own development as mature adult consumers. This means that through natural maturation and interactions with his or her environment, the child moves through a series of stages in being able to organise market information and experiences along with his or her thoughts about these. The stages and their content are the result of interaction of personal factors, such as ones rate of maturing, and environmental factors, such as childs personal, family experiences. It is important to note that research does show that cognitive skills are related to age and generally increase with childs age. Therefore, the learning process for children at varying ages, as well as what is learned, may be quite different. THE COMPONENTS OF THE LEARNING PROCESS: The learning process can be broken down into several key components. These include drive, cue, response, reinforcement, and retention. The natures of these are as follows: -

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Drive: Drive refers to any strong internal stimulus that impels action. It is a force that arouses an individual and keeps him or her ready to respond and, thus, is the basis of motivation. A motive is also an internal stimulus. However, it is directed toward a specific goal, whereas a drive is more general state of being aroused. Traditionally, drives have been classified as either Primary or Secondary. Primary drives are essentially based on innate physiological needs such as thirst, hunger, pain avoidance, and sex. However, more recently these drives have been recognised to reflect also the need for curiosity, exploration, or novelty. Secondary drives are learned; that is, they are acquired over time through experience. An individual is subject to many drives of both types, the intensity of which will vary from time to time. In some cases, this changing intensity is easy to explain, while in others it is not. Cue: Cues, as the term is used here, are stimuli that occur externally to the individual and can emanate from any environmental sources. To be relevant in consumer behaviour, they must affect individual market actions or response tendencies. This affect can arise through visual perception or through any other human senses. It is frequently the marketing managers desire to create cue stimuli that trigger a move to action that culminates in buying some specific goods or services as well as in visiting a particular store. Although it is necessary to focus attention on the cue in consumer behaviour, it should not be forgotten that in most situations the object of primary concern to the manager is the desired response. Most firms make use of a concept called generalisation in their use of cue stimuli. Generalisation refers to the process that enables the individual to respond to a new stimulus as he or she has learned to respond to a similar but somewhat different one in the past. The use of variety of ads with a common theme in a promotional campaign has been an attempt by advertisers to employ the generalisation concept and to reduce consumer boredom. In some cases, for example, this can be facilitated by simply shortening 60-second television commercials to 30-seconds. The appeal of this approach is enhanced because of its economy. Response Response refers to the outcome or what occurs as the result of the interaction among drive, cue, the variables of the internal decision-making process, and environmental forces. The definition of learning referred to earlier state that the outcome can take several forms of interest to the consumer analysts. These include consumer attitude change. This objective may be illustrated by an example from the public sector. A school board that has experienced a series of defeats of its request for additional operating funds may believe that public attitudes toward the local school need to be altered. Such an evaluation of situation by the board could lead them to initiate an informational campaign. This effort may be directed toward supplying influential citizen groups with critical data on the current state of the school and programme plans for coming year. In this situation, the desired outcome of the action undertakenthe informational effortis positive attitude change, the assumption being that more favourable public attitudes will lead to subsequent success in passage of the operating levy.

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Ina scientific sense, it is easier to study simple response such as eye movement or change in an individuals pulse rate following some stimulus than it is to focus on more complex market situations. Reinforcement Reinforcement involves the matching of the consequences or outcomes of a response with anticipated benefits; that is, it is the extent to which the actual benefits of a response coincide with what is considered acceptable, given the reason for action. Generally, the better the match between expectation and outcome, the greater the probability that the same response will be made under similar circumstances in the future. Bayton states, When consumption or utilisation of the goalobject leads to gratification of the initiating needs there is reinforcement. It is necessary to keep in mind that that the phrase under similar circumstances was used above. Sufficient variation can occur to cause the consumer to deviate from what was learned previously. This variation can be brought about by any number of variables. For instance, the consumer may simply feel differently, once his or her drive state has been modified, or it may be that the cue was different. Still another source of variation in the circumstances is the response alternatives open to the consumer. Retention The remembering of learned material and experiences over time is called retention. That which is not retained is considered forgotten. The human ability to remember is of considerable importance to those interested in consumer behaviour. Although there is substantial disagreement about the nature of the forgetting process, most analysts agree that some forgetting does take place and, all other things being equal, the more time that has passed since learning something, the less likely it is going to be remembered. A number of other factors can also affect retention. Some of these include the clarity of the message, the similarity of competing messages, the individuals interest in the subject, and the extent to which what was learned was consistent with ones values and previous experience. Despite the multiplicity of influences on retention, once some thing is learned, it appears that it is never completely forgotten. Therefore, to say that a response tendency has been extinguished merely means that the response in question has been repressed (generally through non-reinforcement), or it may have been essentially been displaced by the learning of an alternative that is incompatible with the original response. ATTITUDE The concept of attitude is one of the most prevalent and important concepts in consumer behaviour. Indeed, in the social sciences generally. Interest in attitudes emanates from the belief that knowledge of attitudes permits accurate prediction of consumer behaviour. Generally a consumers attitudes can be thought of as his or her basic orientation for or against various alternative products, services, retail outlets, and the like. Because attitudes form a coherent system of evaluative orientations, they are important components in any model of consumer decision-making.

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The Meaning of Attitudes Everyone has, on occasion, been asked to express his or her assessment of something. For example, How do you like your new Santro car? How do you feel about your teacher? etc. Thus, although can provide a precise definition of attitudes, most have clear intuitive understanding of what they are. Interestingly enough, even though there is a general agreement on the meaning of attitudes at the intuitive level, there is a little agreement at the theoretical level. An attitude is an abstract concept in that its structure or makeup cannot be directly observed. Thus, the nature of attitude fosters alternative views regarding the underlying structure of attitude and, consequently, alternative definition. The Classical Psychological Model The classical definition is that an attitude is a mental and neutral state or readiness to respond which is organized through experience and which exerts a directive and/or dynamic influence on behaviour. It soon became popular to adopt the classical psychological model, which theorizes those attitudes are made up of three basic components: (1) cognitive, (2) affective, and (3) behavioural. In terms of consumer behaviour, the consumer behaviour, the cognitive component refers to the manner in which a consumer perceives information about a product, service, advertisement, or retail outlet. This component includes beliefs a consumer has about the support services a retailer offers as well as beliefs about the relative merits of the product. In other words, this attitude component includes considerations such as whether Coke or Pepsi tastes better, which has more carbonation, which has a better aftertaste, and which is a better thirst quencher. The affective component is the consumers overall feeling of like or dislike for an attitude object (that is, a product, service, advertisement, retail outlet). Generally, marketing analysts use verbal statements to measure the affective component. The affective and cognitive components are considered to be highly correlated: that is, consumer analysts have observed that a consumers beliefs and feelings toward a particular product are typically consistent. The behavioural component is the consumers action tendency or expected behaviour, that is, his or her intention. This likelihood-of-buying component is relevant to the products normal purchase cycle. Thus, if a consumer indicates an intention to buy a Yamaha motorcycle, it is only reasonable to expect her to buy that brand the next time she buys a motorcycle. Marketing strategists have been particularly concerned about developing accurate and timely measures of the behavioural component because of the relationship between a consumers action tendency and his or her actual purchase behaviour. The idea of attitudes being comprised of three major components has had considerable impact on the thinking of consumer analysts and an especially pronounced impact in the area of advertising. The

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classical psychological model provided the basis for a conception of advertising effectiveness called the hierarchy of effects hypothesis. This model became widely accepted because it provided a concise and lucid, although not completely valid, explanation of how attitudes were changed through advertising. The relationship between the three-attitudinal components and the consumers movement from unawareness to purchase is illustrated in the Hierarchy of Effects Model. Essentially, this model suggests that not only are attitudes made up of three components, but also these components are arranged in a particular order; that is, a consumer must have awareness and knowledge of a product (cognitive component) before a liking and preference (affective component) for it occur. The validity of this model has been the subject of extensive research and debate. There is, for example, some indication that an alternative hierarchy of effects may exist under certain consumption situations. The fact remains that the hierarchy of effects, model is conceptually founded on well-established psychological theory. Furthermore, this model, highly regarded by practitioners, has provided considerable direction for the development of promotional strategy. For example cigarette manufacturers, who are under intense pressure from the FTC to reduce the tar and nicotine contents of their cigarettes, need to aggressively promote their low tar brands to consumers who enjoy the full-flavour brands such as Marlboro, Winston, and Kool. In order to facilitate acceptance of the brands (ignoring the obvious ethical issues), the companies must first create awareness of the cigarettes and knowledge about their relative health attributes. Next, the companies must create a liking and preference for the brands until consumers are convinced of the advantage of smoking milder cigarettes. Finally, the company can seek trial and repurchase of the brands. Related Behavioural Dimensions Movement toward Purchase

Purchase Behavioural Conviction Preference Affective Liking Knowledge Awareness Cognitive Unawareness

Fig. 3.1: Hierarchy of Effects Model

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THE MULTI -ATTRIBUTE MODELS The past decade has been characterised by the emergence of multi-attribute models of attitudes. Although several models have been developed, the work of Fishbein has perhaps had the greatest impact. Fishbein introduced beliefs as the cognitive foundation on which attitudes are built. Attitudes are functionally related to intentions, according to Fishbein, which, in turn predict behaviour. (1). Evaluative criteria: desired outcomes from choice or use of an alternative expressed in the form of the attributes or specifications used to compare various alternatives. (2). Beliefs: information, which links a given alternative to a specified evaluative criterion, specifying the extent to which the alternative possesses the desired attribute. (3) Attitude: a learned predisposition to respond consistently in a favourable manner with respect to a given alternative. (4) Intention: the subjective probability that beliefs and attitudes will be acted upon.

Evaluative criteria Beliefs Attitudes

Intentions Fig 3.2: The Relationship of Evaluative Criteria, Beliefs, Attitudes, and Intentions The multi-attribute models that have been developed to explain the process by which consumers form beliefs and attitudes fall into two major categories, compensatory and non-compensatory. Compensatory models--such as the expectancy value model and the attribute adequacy model--are models in which a weakness of one attribute may be compensated for by strengths of another attribute. Noncompensatory models--such as the conjunctive model, disjunctive model, and lexiographic model--are those models in which a weakness of one attribute is not compensated for by strength of another attribute. A brief explanation of the major compensatory and non-compensatory models are presented below. COMPENSATORY MODELS

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Expectancy-Value Model: This model assumes that each alternative will be evaluated on more than one attribute. Judgements are based on beliefs about whether or not an object actually possess an attribute and the evaluation of the goodness or badness of those beliefs. Each brand is evaluated individually on all attributes and the total evaluation is the sum of the ratings of each attributes. The consumer selects the brand with the highest overall evaluation. Attribute Adequacy Model: In the attribute adequacy model, an evaluation is arrived at in a manner similar to that discussed above, with the exception that an explicit assessment is made of the differences between ideal and actual of each attribute possessed by the object under consideration. NON-COMPENSATORY MODELS Conjunctive Model: In the case of this model, the consumer establishes a minimum acceptable level for each product attribute. A brand is determined to be acceptable only if each attribute equals or exceeds that minimum level. A lower than acceptable rating of one attribute will lead to a negative evaluation and rejection of the product. For example, a stereo component system may be evaluated as completely satisfactory in terms of sound reproduction and appearance but be rejected because it is not compact enough in size. Disjunctive Model: The disjunctive model suggests that consumers establish one or more attributes as being dominant. A brand will be evaluated as acceptable only if it exceeds the minimum specified level of these key attributes. To continue with the example of the stereo component set, assume that sound reproduction and mechanical characteristics are the dominant considerations. Any set measuring up to expectations on these attributes will be regarded as acceptable no matter what its size, colour, and so on. Lexiographic Model: According to the lexiographic model, the consumer ranks product attributes from most important to least important. The brand that dominates on the most important criterion receives the highest evaluation. If two or more brands tie, the second attribute is examined and so on until the tie is broken. While there is a distinct possibility that consumers use each of these models in certain circumstances, there is growing evidence that the expectancy-value model holds the greatest promise. The next section contains a detailed description of the two dominant expectancy-value models. ATTITUDES TOWARDS ALTERNATIVES EXPECTANCY- VALUE MODELS

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The dominant focus of consumer researchers in explaining attitudes toward alternatives has been the expectancy-value mode, particularly the Rosenberg Model and the Fishbein Model. The Rosenberg Model The Rosenberg Model considers attitudes to contain two variables: (1) values (approximately equivalent to evaluative criteria) and their importance in arriving at an attitude and (2) perceived instrumentality (the degree to which the taking of a point of view or following an action will either enhance or block the attainment of a value). For example, if low price is an important value (evaluative criterion) and the consumer has come to believe that brand A offers a low price, then the perceived instrumentality of brand A would be high. Rosenbergs model is expressed as follows:

A0 = (Vied) (PIi)
i=1

where: A0 = the overall evaluation of the attractiveness of alternative 0; VIi = the importance of the ith value; PIi = the perceived instrumentality of alternative 0 with respect to the value; N = the number of pertinent or salient values. In its pure form, the Rosenberg Model calls for the measurement of value importance on a scale of 21 categories ranging from gives me maximum satisfaction (+10) to gives me maximum dissatisfaction (-10). From the earlier example, the low price might receive a rating of +10. Perceived instrumentality is assessed using 11 categories ranging from the condition is completely attained through a given action (+5) to the condition is completely blocked through undertaking the given action (-5). Perhaps brand A in the above example would be given a score of +5 on this variable. The Fishbein Model The Fishbein Model is similar in many ways to Rosenbergs formulation, but there are subtle differences. His first component is belief, defined as the probability that an object does or does not have a particular attribute. The second component is an affective term, normally stated in terms of good or bad. It specifies whether or not the possession or lack of possession of the attribute in question is positive or negative. Fishbeins model is expressed as follows.

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N

A0 = Bi, ai i=1 where: A0 = attitude toward the object; Bi = the ith belief about the object; ai = the evaluation of the object; N = the total number of beliefs. That is, the formula calls for belief (Bi) and evaluation (ai) scores to be multiplied for each belief. Then these scores are summed to arrive at a single attitude ranking. This initial formulation by Fishbein was later revised to reflect the results of major research efforts. The revised Fishbein Model stated below has had a dramatic impact on the research and application of attitudes in consumer behaviour.

Aact = Bi ai i =1 where: Aact = attitude toward the act under consideration; Bi = the ith belief toward the act; ai = the evaluation of the object; N = the total number of beliefs. The differences between A0 and Aact are not in the formulation but in the questions utilized to assess B and a components. The questions here focus on one specific purchase-and-use situation and attempt to evaluate the consequences. Belief may now be interpreted as the probability that a product attribute will exist or that the act of purchase will give certain consequences. The ai component evaluates that belief along a good-bad dimension. An Application of the Expectancy-Value Model

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Most of the marketing applications have not strictly followed either the Rosenberg Model or the Fishbein Model. Rather, the applications have used some modification of them. Consider, for example, the following application.

n A0 = Wi Bib i=1 where: A0 = attitude toward a particular alternative 0; Wi= weight or importance of evaluation criterion i; Bib= evaluative aspect or belief with respect to utility of alternative b to criterion i; n = number of evaluative criteria important in selection of an alternative in category under consideration. In this formula, Wi is the weight or importance of the evaluative criterion, and Bib is the evaluation of the alternative along criterion. This rating is performed for each evaluative criterion, and the summed score is attitude toward the alternative. Questions for Discussion. 1. 2. What are the basic differences among the three major personality theories? How might the marketing strategies developed by proponents of each of these theories differ from one another? For what types of products is life-style research most appropriate? In what ways would a marketing manager make the most productive use of information received from life-style research? 3. 4. 5. Because learning is basic to human existence, is it an appropriate area for marketing managers to attempt to manipulate? Explain your answer. Is it possible to unlearn something? Does this affect consumer behaviour? Explain. Distinguish between the classical psychological model and the multi-attribute model. Which model holds the greatest promise for marketing strategists? satisfy evaluative

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UNIT-4 DIFUSION OF INNOVATIONS This unit examines a major aspect of consumer behaviourthe acceptance of new products and services. The introduction of new product is vital to both consumer and marketers. For the consumer, new products represent an increased opportunity for better satisfaction of personal. Social, and environmental needs. For the marketers, new products provide an important mechanism for keeping the firm competitive and profitable. The framework for exploring consumer acceptance of new product is drawn from the area of research known as the Diffusion of Innovations. Consumer researchers who specialize in diffusion of innovations are primarily interested in understanding (a) how the acceptance of new product spreads within a market, and (b) the decision making process that led the consumer to accepting or rejecting the new product. This discussion of the diffusion of innovations concentrates on two closely related processes: the Diffusion process and the Adoption process. In broadest sense, diffusion is a macro process concerned with spread of new product (an innovation) from its source to the consuming public. In contrast, adoption is a micro process that focuses on stages through which an individual consumer passes in making the decision to accept or reject a new product. In addition to an examination of these two interrelated processes, a profile of the of consumer innovator is presented herethose who are the first to purchase a new product. The ability of marketers to identify and reach this important group of consumers plays a major role in the success or failure of new product introduction. THE DIFFUSION PROCESS The diffusion process is concerned with how innovations spreadhow they are assimilated within a market. More precisely, diffusion is a process by which the acceptance of an innovation (a new product, a new service, new idea, new practice, new market) is spread by communication (mass media, salespeople, informal conversation) to members of a social system (a target market) over a period of time. This definition includes the four basic elements of diffusion process: (1) the innovation, (2) the channel of communication, (3) the social system, and (4) time. The Innovation There is no universally accepted definition of the term product innovation or new product. Indeed, the various approaches that have been taken to define a new product can be classified as firmoriented, product-oriented, market-oriented, and consumer-oriented.

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Firm-oriented definitions: A firm-oriented approach treats the newness of a product from the perspective of the company producing and marketing it; that is, if the product is new to the company, it is considered new. This definition ignores whether or not the product is actually new to the marketplace (i.e., to the competitors or consumers). Consistent with this view, copies or modifications of a competitors product would qualify as new. While this definition has considerable merit if the objective is to examine the impact that a new product has on the firm, it is not very useful if the goal is to understand consumer acceptance of a new product. Product-oriented definitions: In contrast to firm-oriented definitions, a product-oriented approach

focuses on the features inherent in the product itself. And the effects these features are likely to have on consumers established usage patterns. One product-oriented framework considers the extent to which a new product is likely to disrupt established behaviour patterns. It defines three types of product innovations: continuous, dynamically continuous and discontinuous. A continuous innovation has the least disruptive influence on established pattern. It involves the introduction of a modified product, rather that a totally new product. Examples include Gel toothpaste, new model of old car etc. A dynamically continuous innovation is somewhat more disruptive than a continuous innovation, but still does not alter established behaviour patterns. It may involve the creation of new product or the modification of an existing product. Examples include CD player, erasable-ink pen etc. A discontinuous innovation requires consumers to adopt new behaviour patterns. Examples include home computer, videocassette recorder etc. Another product-oriented definition suggests that the extent of product newness can be measured in terms of how much impact its physical features or attributes are likely to have on user satisfaction. Thus, the more satisfaction a consumer derives from a new product, the higher it ranks on the scale of newness. The concept leads to the classification of products as artificially new, marginally new, or genuinely new. A genuinely new product has features that satisfy the user in a manner that differ significantly from that of an older product. New product that have been judged as having enough newness to qualify as genuinely new include frozen breakfast, in-home medical test kit etc. Market-oriented Definitions. A market-oriented approach judges the newness of a product in terms of how much exposure consumers have to the new product. Two market-oriented definitions of product innovation have been used extensively in consumer studies:

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1. 2. A product is considered new if it has been purchased by only a relatively small (fixed) percentage of the potential market. A product is considered new if it has been on the market for relatively short (specific) period of time. Both of these market-oriented definitions are basically subjective because they leave to the researchers the task for establishing the degree of sales penetration within which the product can be called an innovation (e.g., the first five percent to use the new product) or how long a product can be on the market and still be considered new (e.g., the first three months the product is available) Consumer-oriented Diffusions. While each of the three approaches described above have been useful to consumer researchers in their attempt to study the diffusion of innovations, some researchers have suggested that a consumer-oriented approach is the most appropriate way to define an innovation. In this context, a new product is any product that a potential consumer judges to be new. In other words, newness is based on consumers perception of the product, rather than on physical features or market realities. Although the consumer-oriented approach has been endorsed by some advertising practitioners and marketing strategists, it has received little sympathetic attention from consumer researchers. Product Characteristics that Influence Diffusion All products that are new do not have equal potential for consumer acceptance. Some product seems to catch on almost overnight while others take a very long time to gain acceptance. Some new products never seem to achieve widespread consumer acceptance. It would reduce the uncertainties of product marketing if marketers could anticipate how consumers will react to their product. For example, if the marketer new that a product contained feature that were likely to inhibit its acceptance, the marketer could develop a promotional strategy that would compensate for these features, or decide not to market the product at all. Although there are no precise formulas by which the marketers can evaluate a new products likely acceptance, diffusion researchers have identified five product characteristics that seem to influence consumer acceptance of new products: (1) relative advantage, (2) compatibility, (3) complexity, (4) trialability, and (5) observability. Relative advantage is the degree to which potential customers perceive a new product as superior to existing substitutes. An outstanding example of an innovation that offers users a relative advantage in their ability to communicate is the facsimile machine (or Fax). Compatibility is the degree to which potential consumers feel a new product is consistent with their present needs, values, and practices. For example, it is not too difficult to imagine men making the transition from permanent razorsinvolving disposal of only the bladeto fully disposable razors that are completely thrown away after the blade becomes dull.

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Complexity is the degree to which a new product is difficult to understand or use. Clearly, the easier it is to understand and use a new product, the more likely it is to be accepted. For example, the acceptance of instant coffee packet is due to its ease of preparation and use. Trialability is the degree to which a new product is capable of being tried on a limited basis. The greater the opportunity to try a new product, the easier it is for consumers to evaluate it. In general, it would seem that frequently purchased household products tend to have qualities that make trial relatively easy. For instance, for many supermarket products it is possible for consumers to make a trial purchase of a new brand in a smaller quantity than they might usually purchase. Marketers of such products recognise that smaller-than-average sizes tend to stimulate new-product trial. Observability (or communicability) is the ease with which a products benefits or attributes can be observed, imagined, or described to potential customers. Products that have a high degree of social visibility, such as fashion items, are more easily diffused than products that are used in private, such as brand of toothpaste. Similarly, a tangible product is promoted more easily than an intangible product (i.e., service). It is important to recognise that each of these product attributesrelative advantage, compatibility, complexity, trialability, and observabilityis dependent on consumer perception. A product that is perceived as having a strong relative advantage, as fulfilling present needs and values, as easy to try on a limited basis, and as simple to understand and to examine, is more likely to be purchased than a product that is not so perceived. Moreover, a particular innovation may diffuse differently in different culture. Resistance to Innovation What makes some new products almost instant success, while others struggle to achieve consumer acceptance? To help answer such questions, a model of innovation resistance has been developed in an attempt to provide further insights into the adoption and diffusion processes. The product characteristics of an innovation help to determine the extent of resistance, which increases with: 1. 2. 3. 4. 5. Low perceived relative advantage; Low perceived compatibility; Low trialability; Low communicability; and High complexity.

The Channels of Communication

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How quickly an innovation spreads through a market depends to a great extent on communications between the marketers and consumers, and communication among consumers. Researchers interested in diffusion pay particular attention to the product related information through various communication channels, and to the impact of both the messages and the channels on adoption or rejection of new products. Central concern has been the relative influence of impersonal sources (e.g., advertising and editorial matter) and interpersonal sources (salespeople and informal opinion leaders). One major stream of research has focused on the relative importance of certain types of information sources on early versus later adoption of new products. Specifically, the following generalisations gleaned from diffusion research indicate that, relative to later adopters, the early adopters: 1. 2. 3. 4. 5. have more change-agent contact (e.g., with salespeople) have greater exposure to mass-media communication channels seek information about innovations more frequently have greater knowledge of innovations have a higher degree of opinion leadership.

In recent years, a variety of new channels of communication have been developed to inform consumers of innovative products and services. In the process of the growth of interactive advertising, the consumers become an important part of communication, rather than just the message recipient. The Social System The diffusion of a new product usually takes place in a social settingfrequently referred to as a social system. In the context of consumer behaviour, the terms Market Segment and Target Market are synonymous with the term Social System used in diffusion research. A social system is a physical, social, or cultural environment to which people belong and within which they function. The orientation of a social system, with its own special values or norms, is likely to influence the acceptance or rejection of new products. If the social system is modern in orientation, the acceptance of innovation is likely to be high. In contrast, if a social system is traditional in orientation, innovations that are perceived as radical or as infringements on established custom are likely to be avoided. The following characteristics typify a modern social system: A positive attitude toward change. An advanced technology and skilled labour force. A general respect for education and science. An emphasis on rational and ordered social relationship rather than on emotional ones.

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An outreach perspective, in which members of the system frequently interact with outsiders, thus facilitating the entrance of new ideas into the social system. The members of the system can readily see themselves in quite different roles.

The orientations of a social system (either modern or traditional) may be national in scope and influence members of an entire society, or may exist at the local level and influence only those who live in a specific community. The key point is that a social systems orientation is the climate in which the marketers must operate in attempting to gain acceptance for their new products. Time Time is the backbone of the diffusion process. It pervades the study of diffusion in three distinct but interrelated ways: (1) purchase time, (2) the identification of adopter categories, and (3) the rate of adoption. Purchase Time: Purchase time concerns the amount of time that elapses between the consumers initial awareness of a new product and the point at which he or she purchases or rejects it. Purchase time is an important concept because the average time a consumer takes to adopt a new product is a predictor of the overall length of time it will take for new product to achieve widespread adoption. For example, when the individual purchase time is short, a marketer has reason to expect that the overall rate of diffusion will be faster than when the individual purchase time is long, as in the purchase of a personal computer. Another aspect of the impact of time on the adoption and diffusion process is how an innovation, over time, moves toward becoming a necessity in the minds of adopter within a particular society. Adopter Categories: The concept of adopter categories involves the determination of a classification scheme that indicates where a consumer stands relative to other consumers in term of when he or she adopts a new product. Five adopter categories are frequently cited in the diffusion literature: innovators, early adopters, early majority, late majority, and laggards. Instead of using the classic five-category adopter scheme, many consumer researchers have used other classification schemes, most of which consist of two or three categories that compare innovators or early triers with later triers or non-triers. Rate of Adoption: The rate of adoption is concerned with how long it takes for a new product to be adopted by members of a social system; that is, how quickly a new product is accepted by those who will ultimately adopt it. Recent research has shown that the rate of adoption for new product generally has been increasing (i.e., getting shorter). In the marketing of new products, the objective is usually to gain wide acceptance of the product as quickly as possible. Marketers desire a rapid rate of product adoption in order to penetrate the market and establish market leadership before competition takes hold. A penetration policy is usually accompanied by a relatively low introductory price designed to discourage competition

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from entering the market. Rapid product adoption also demonstrates to marketing intermediaries (wholesalers and retailers) that the product is worthy of their full and continued support. Under certain circumstances, marketers might prefer to avoid a rapid rate of adoption for a new product. For example, marketers who wish to employ a pricing strategy that will enable them to recoup their development costs quickly might follow a skimming policythey first make the product available at a very high price to consumers and then gradually lower the price in a stepwise fashion in order to attract additional market segments at each price reduction. In addition to how long it takes from introduction to the point of adoption (e.g., when the purchase actually occurs) it is useful to track the extent of adoption (i.e., the diffusion rate). THE ADOPTION PROCESS The second major process in the diffusion of innovation is adoption. The focus of this process is the stages through which an individual consumer passes in arriving at a decision to try or not to try, to continue using or to discontinue using a new product. (The adoption process should not be confused with adopter categories.) Stages in the Adoption Process It is often assumed that the consumer moves through five stages in arriving at a decision to purchase or reject a new product: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (4) adoption (or rejection). The assumption underlying the adoption process is that consumers engage in extensive information search, while consumer involvement theory suggests that for some products limited information search is likely. The stages in the adoption process have been described as follows: 1. Awareness: During the first stage of adoption process, consumers are exposed to the product innovation. This exposure is somewhat neutral, since they are not yet sufficiently interested to search for additional product information. 2. 3. Interest: When consumers develop an interest in the product or product category, they search for information about how the innovation can benefit them. Evaluation: Based on their stock of information, consumers draw conclusions about the innovation or determine whether further information is necessary. The evaluation stage thus represents a kind of mental trial of the product innovation. If the evaluation is satisfactory, the consumers will actually try the product innovation; if the mental trial unsatisfactory, the product will be rejected. 4. 5. Trial: At this stage, consumers actually use the product on a limited basis. Their experience with the product provides them with critical information they need to adopt or reject. Adoption: Based on their trials and /or favourable evaluation, consumers decide to use the product on a full rather than limited basis or they decide to reject it.

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A recent study of the consumer decision process suggests that it may be appropriate to add two additional stages between trial and adoptiondirect product experience (consequence) and product evaluation (confirmation). The adoption of some products and services may have minimal consequences, while the adoption of other innovations may lead to major behavioural and life style changes. Examples of innovations with such major impact on society include the automobile, the television, and the electric refrigerator. Limitations of Adoption Process Although the traditional adoption process model has been instructive for consumer researchers, it has been criticised for having following limitations: It does not adequately acknowledge that a need or problem recognition stage may precede the awareness stage. It does not adequately provide for the rejection of a product after its trial (i.e., a consumer may reject the product after trial or never use the product on a continuous basis). It does not adequately recognise that evaluation occurs throughout the decision-making process and not solely at the evaluation stage. It does not adequately account for the possibility that the five stages may not always occur in the specific order suggested, nor does it consider that some of the stages may in fact be skipped. Finally, it does not explicitly include post-purchase evaluation, which can lead to a strengthened commitments, or to a decision to discontinue use. To overcome the limitations discussed above, the traditional adoption process model has been updated into a more general decision-making modelthe innovation decision process model. The five stages of the revised adoption process model are: 1. 2. 3. 4. 5. Knowledge: Consumers are exposed to the innovations existence and gain some understanding of how it functions. Persuasion (attitude formation): Consumers form favourable or unfavourable attitudes toward the innovation. Decision: Consumers engage in activities that lead to a choice to adopt or reject the innovation. Implementation: Consumers put an innovation into use. Confirmation: Consumers seek reinforcement for their innovation decision, but may reverse this decision if exposed to conflicting messages about the product.

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The innovation decision process model is more comprehensive than the earlier adoption process model and overcomes many of its basic limitations. It is much more attuned to the realities faced by the marketers launching a new product. A 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 the definition, however, concerns the concept earliest, which is, after all, a relative term. Sociologists have treated this issue by sometimes defining innovators as the first 2.5 percent of the social system to adopt an innovation. In a good number of marketing diffusion studies, however, consumer researchers have derived the definition of consumer innovator from the status of new product under investigation. For example, if the researcher assesses the new product as an innovation for the first three months of its availability, then he or she defines the consumers who purchase it during this period as innovators. Other researchers have defined innovators in terms of their innovativenessthat is, their purchase of some minimum number of new products from a selected group of new products. For instance, in the adoption of new fashion items, innovator could be defined as those consumers who purchased more than one fashion products from a group of ten new fashion products. Non-innovators could be defined as those who purchased none or only one of the new fashion products. The Innovator is an Opinion Leader In discussing the characteristics of the opinion leader, it has been indicated that a strong tendency for consumer opinion leader to be innovators. In the present context, it is worthwhile to note that an impressive number of studies on the diffusion of innovations have found that consumer innovators are likely to provide other consumers with information and advice about new products, and that those who receive such advice frequently follow it. Thus, in the role of opinion leader, the consumer innovator often influences the acceptance or rejection of new products. If innovators are enthusiastic about a new product and encourage others to try it, the product is likely to receive broader and quicker acceptance. If the consumer innovators are dissatisfied with a new product and discourage others from trying it, its acceptance will be severely limited and it may die a quick death. For products that do not generate much excitement (either positive or negative), consumer innovators may not be sufficiently motivated to provide advice. In such cases, the marketer not only must rely almost entirely on mass media and personal selling to influence future purchasers, but the absence of informal influence is also likely to result in a somewhat slower rate of acceptance (or rejection) for the new product. Since motivated consumer innovators can speed up acceptance or rejection of a new product, they influence its eventual success or failure.

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Personality Traits This section will briefly highlight what researchers have learned about the personality of the consumer motivator. First, consumer motivators have been found to be less dogmatic than non-innovators. They tend to approach new or unfamiliar products with considerable openness and little anxiety. In contrast, non-innovators seem to find new products threatening, to the point where they prefer to delay purchase until the products success has been clearly established. Consistent with their open-mindedness, consumer innovators are also inner-directed; that is. They rely on their own values or standards in making a decision about a new product. In contrast, noninnovators are other-directed, tending to rely on others for guidance on how to respond, rather than trusting their own personal values or standards. Researchers have isolated a link between variety seeking and certain personality traits and purchase behaviours that give insights into consumer innovators. Varietyseeking consumers have been found to be brand switchers and purchasers of innovative products and services. They have also been found to possess the following innovator-related personality traits; openmindedness (i.e., low dogmatism), to be extroverts, to be liberal, low in authoritarianism, able to deal with complex or ambiguous stimuli, and to be creative. To sum up, consumer innovators seem to be more receptive to the unfamiliar; they are more willing to rely on their own values or standards than on the judgement of others. They are also willing to run the risk of a poor product choice in order to increase their exposure to new product that will be satisfying. For the marketer, the personality traits that distinguish innovators from non-innovators suggest that need for separate promotional campaigns for innovators and later adopters. Consumer innovators are more likely to react favourably to informative or fact-oriented advertising that appeal to their strong interest in the product category, and to readily evaluate the merits of a new product on the basis of their own personal standards. To reach non-innovators, it would seem appropriate to feature reference group settings and to use a recognised and trusted expert or celebrity to appeal to their other-directed responsiveness to authority figure. In terms of category width, which purports to measure an individuals risk-handling orientation, the consumer innovator has been found to be a broad categorizer, whereas the non-innovator tends to be a narrow categorizer. Broad categorizer tends to try many new products, even though by doing so they subject themselves to the risk of acquiring unsatisfactory products. On the other hand, narrow categorizers are so afraid of making poor product

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choice that they limit their trial of new products, even though they may forgo the benefits of desirable new products. Perceived Risk Perceived risk is another measure of a consumers tendency to try new brands or products. Perceived risk can be thought of as the degree of uncertainty or fear about the consequences of a purchase that a consumer feels when considering the purchase of a new product. For example, consumers experience uncertainty when they are concerned that a new product will not work properly or be as good as other alternatives. Research on perceived risk and trial of new products overwhelmingly indicates that the consumer innovator is a low-risk perceiver. Consumers who perceive little or no risk associated with the purchase of a new product are much more likely to purchase it than consumers who perceive a great deal of risk. In other words, high-risk perception limits innovativeness. Venturesomeness Venturesomenessa personality-like variableis a broad based measure of a consumers willingness to accept the risk of purchasing new products. Measures of venturesomeness have been used to evaluate a persons general values or attitudes towards trying new product. Research that has examined venturesomeness has generally found that consumer who indicate a willingness to try new products tend to be consumer innovators (as measured by their actual purchase of new products). On the other hand, consumers who express a reluctance to try new products are in fact less likely to purchase new products. Therefore, venturesomeness seems to be an effective barometer of actual innovative behaviour. Consistent with their venturesomeness and lowered risk perception, consumer innovators are also likely to learn about innovations earlier than others. They also tend to be more intrigued with the prospect of newness than are non-innovators. Consumer innovators are also more likely to be deal-prone (to take advantage of special promotional offers such as free samples etc.). Consumer innovators are also likely to be heavy users of the product category in which they innovate. Specifically, they would purchase larger quantities of the product and consume more than non-innovators. Media Habits Comparisons of the media habits of innovators and non-innovators across such widely diverse areas of consumption of fashion clothing and new automotive services suggest that innovators have somewhat greater exposure to magazines than non-innovatorsparticularly to special interest magazines devoted to product category in which they innovate. Special-interest magazines frequently point to the fact that they reach innovative consumers in their own ads aimed at prospective advertisers. It appears that consumer innovators are likely to have less exposure to television than non-innovators. Studies concerning

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the relationship between innovative behaviour and exposure to other mass media, such as radio and news papers, have been too few and the results too varied to draw any useful conclusions. Social Characteristics Consumer innovators are more socially accepted and socially involved than non-innovators. For example, innovators are more socially integrated into the community, better accepted by others, and more socially involvedthat is, they are likely to belong to more social groups and organisationsthan noninnovators. This greater social acceptance and involvement of consumer innovators may in part explain why they function as effective opinion leaders. Demographic Characteristics It is reasonable to assume that the age of consumer innovator is related to specific product category in which he or she innovates; however, research suggests that consumer innovators tend to be younger than either late adopters or non-innovators. This is no doubt due to the fact that many of the products selected for research attention are particularly attractive to or are targeted by marketers to younger customers. Consumer innovators have more formal education, higher personal or family incomes, and more likely to have higher occupational status than later adopters or non-innovators. In other words, innovators tend to be more upscale than other consumer segments. Do consumer innovators in one product category tend to be consumer innovators in other product categories? The answer to this strategically important question is a guarded NO. The overlap of innovativeness across product categories seems to be limited to product categories that are closely related to the same basic interest area. Consumers who are innovators one new food product or one new appliance are more likely to be innovators of the other new products in the same general product category. In other words, no single or generalised consumer-innovativeness trait seems to operate across broadly different product categories, evidence suggests that consumers who innovate within a specific product category, will innovate again within the same product category. While there is little evidence to support the notion of a universal consumer innovator, there is evidence to support the existence of a relatively small number of consumers who respond to new offerings across the variety of loosely related product and service categories. These consumers, who have been labelled, super innovators, were among the first to purchase a new product or service in three or more areas. Questions for discussion

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1. 2. 3. 4. 5. 6.

What are the essential differences between products, market, and consumer--oriented definition of a new product? Which definition do you feel is most suitable for marketers? Compare and contrast the adoption and diffusion processes. Discuss each process in terms of the market acceptance of fax machines. Explain the characteristics of consumer innovators with their implication on marketing strategy development. Explain the concepts of continuous innovation, dynamically continuous innovation, and discontinuous innovation? Outline the different product characteristics that influence diffusion. What are the major resistances to innovation?