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Consumer Behaviour

Faculty : Prof . Ashok Kumar

Not for circulation : for internal use only

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Core text books : 1

Consumer behavior Leon G Schiffman & L.L Kanuk

  • 2 Consumer behavior ( A strategic Approach ) Dr Henry Assael

  • 3 Consumer Behavior & Branding S.Ramesh Kumar ( indian context )

How does Consumer behavior study help business?

A recipe of good marketing strategy lies in sound understanding of its market.

All good market communication strategies( brand , IMC ) are developed from deeper insight in the market.

Sound Product Distribution, Price , Customer services

( CRM ) strategy etc originates from understanding of behavior of a market.

Consumer Buying process

Impulsive buying : Consumer buy due to

stimuli

Compulsive buying : Consumer feels the

product or service is best suited for her

need

Addictive buying : Consumer feels the

product or service is only option available

to meet her

aspiration & life style .

How does consumer buying behavior study help business .

Break MARKET CLUTTER

How does consumer buying behavior study help business . Break MARKET CLUTTER Create DIFFERENTIATION ( USP)

Create DIFFERENTIATION

( USP)

How does consumer buying behavior study help business . Break MARKET CLUTTER Create DIFFERENTIATION ( USP)

Overcome Commodity

image

How does consumer buying behavior study help business . Break MARKET CLUTTER Create DIFFERENTIATION ( USP)

Eliminate

PRICE WAR

How does consumer buying behavior study help business . Break MARKET CLUTTER Create DIFFERENTIATION ( USP)
5
5

Create Mind base Positioning

Overcome BLOOD BATH

Not for circulation : for internal use

only

Re 5% purchase Trail 20% Preference 25% Linking 40% Comprehension 70% 90% Awareness
Re 5% purchase Trail 20% Preference 25% Linking 40% Comprehension 70% 90% Awareness
Re
5%
purchase
Trail
20%
Preference
25%
Linking
40%
Comprehension
70%
90%
Awareness

CONSUMER BEHAVIOR STUDY & MARKETING

COMMUNICATION

CONSUMER BEHAVIOR STUDY & MARKETING COMMUNICATION Build / Create Dominating or self expressive brands. Integrated Market

Build / Create Dominating or

self expressive brands.

Integrated Market Communication

& MARKETING Strategies

Consumer Behaviour

Research

&

CONSUMER BEHAVIOR STUDY & MARKETING COMMUNICATION Build / Create Dominating or self expressive brands. Integrated Market

Doing business without

Knowing your Consumer is

like winking at a pretty girl in dark.

You only know what you are doing

but not the pretty girl.

What are the chances that she will respond ?????

ASSIGNMENT OF CONSUEMR RESERARCH IDENTIFY A RESEARCH OBJECTIVE

MARKS = 30

DEFINE RESEARCH PROBLEM

DEFINE RESEARCH DESIGN

DEFINE RESEARCH METHODOLY

SAMPLE FRAME SAMPLE SIZE SAMPLE UNIT DATA COLLECTION QUESTIONAIRE DESIGN DATA COLLECTION APPROACH DATALANSYSIS DATA INTERPRETATION & CONCLUSION

Consumer Power & Shifting trend in business

Consumer to TRANSUMER, PROSUMER

Create MASSCLUSIVITY -

Create

exclusivity from the mass.

The center of all business a ―Consumer‖ has been

transforming rapidly & have become more opaque .

Consumer consistently demand value from the products & services .

The marketer believes that brand is most important to a

consumer .

A consumer is exposed to 600 market communication a

day approximately. ( Research results )

A consumer looks beyond the the basic functionality of products & services which he does not articulate.

Consumer Insights A consumer insight is a discovery about people that enables

us to establish a natural connection between a product and

their daily lives. Insights into peoples‟ behavior are not

singular by nature, but are a collection of motives, ideas, memories that come together and form an opinion on a product or service. The skill is to identify the insight and create a clear single proposition that enables people to buy, try or react to your product.

“It does exactly what I wanted it to do, I couldn’t live

without it”. ….

Consumer

Consumer behavior study is conducted by an organization at the following stages.

Pre sale Situation

Consumption

Stage

After sale

Scenario

Consumer behavior study is conducted by an organization at the following stages. Pre sale Situation Consumption

Understand the

Behavior pattern To shape the Communication

Maximize the sale

& involvement with Product /service

Build loyalty & Brand commitment

Socio graphic Factor

Socio culture

Demographic

  • Marketing strategy for

Socio graphic Factor Socio culture Demographic Marketing strategy for Consumer Personality 1. Product & service Development

Consumer

  • Personality

Socio graphic Factor Socio culture Demographic Marketing strategy for Consumer Personality 1. Product & service Development
Socio graphic Factor Socio culture Demographic Marketing strategy for Consumer Personality 1. Product & service Development
  • 1. Product & service Development

    • 2 STP

    • 3 Communication

    • 4 CLP

      • 1. Pricing strategy

      • 2. Sales strategy

      • 3. Brand building

Consumer

Life style

Socio graphic Factor Socio culture Demographic Marketing strategy for Consumer Personality 1. Product & service Development

Internal

Factors

Situational

Factors

Situational

need

motivator

Attitude & aspiration

Perception

Self concept

Linear perceived value model.

Consumer

=

Perceived Value

Brand attribute X Consumer Attribute

Consumer types according to loyalty

Consumer types according to loyalty Personal consumer & Business Consumer Solus Users/ Loyal buyer Dual users

Personal consumer & Business Consumer

Consumer types according to loyalty Personal consumer & Business Consumer Solus Users/ Loyal buyer Dual users

Solus Users/

Loyal buyer

Consumer types according to loyalty Personal consumer & Business Consumer Solus Users/ Loyal buyer Dual users

Dual users

Flirts /

Switcher

Degree of commitment towards product or service brands.

High Medium Low
High
Medium
Low

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Dimensions of Loyalty

Strongly feels the chosen Brand is best & stick to it.

1 Emotive

loyalist

Dimensions of Loyalty Strongly feels the chosen Brand is best & stick to it. 1 Emotive
Dimensions of Loyalty Strongly feels the chosen Brand is best & stick to it. 1 Emotive
  • Loyalist

Customer
Customer
Dimensions of Loyalty Strongly feels the chosen Brand is best & stick to it. 1 Emotive
2 Inertial loyalist
2 Inertial
loyalist

Infrequently re assesses

Purchase decision .

Frequently re assesses purchase decision . Re

confirm the brand chosen Meets the desire & function

Re consider the brand with

every Change in need.

3 Deliberative

loyalist

1 Life style

Downward

migrators

Migrators

  • Downward

Dimensions of Loyalty Strongly feels the chosen Brand is best & stick to it. 1 Emotive

2 Deliberative

migrators

Believes in selecting new

brand every time . Frequently re assess the new brand in the market.

3 Dissatisfied Downward

Highly dissatisfied. Prompted to re valuate alternatives

Not for circulation : for internal use

migrators

only

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CLP, Loyalty cost & Consumer behavior

Return/ Total Revenue = (R new + R existing ) Revenue Increased profitability MCC Time Customer
Return/
Total Revenue = (R new + R existing )
Revenue
Increased
profitability
MCC
Time
Customer life cycle
Cost

LCC

Consumer Types

Personal consumer

Organizational / Industrial Consumer

Buys for individual Consumption.

Buying decisions are influenced by

Cognitive, Personal, cultural ,social Influence & Situational Factors.

Buying for organizational consumption

Buying decisions are influenced by Quality , service , attitude of the suppliers Financial considerations etc . Besides this , Environmental , organizational, interpersonal

Factors influence the decisions.

The buying decision involves decision Makers viz

  • 1 End User,

  • 2 Influencer,

  • 3 Financial Decision makers ( management )

  • 4 commercial buyer. SATISFACTION OF ALL GROUPS ARE

Not for circulation : for internal use

ESSENTIAL .

only

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Buying decisions in B2B system are influenced by :

Quality

  • service

Attitude of the suppliers Financial considerations( Ability to absorb credit , differed payment , Lease rental etc ) Environmental factors ( Legal & political ) Capacity to supply & lead time . Technology factors Business process such as use of SCM , ERP e- Business tools. Organizational interpersonal dynamics .

An integrative model for organizational buying behavior

Information

Source

Sales person Trade show Direct mail

Seminar

Word of mouth

Professional

Situational Factors Policy factors

Financial

Service

Technology

Influencing

Decision

Agents

Buying

Decision

Conflict

Within Buying center

Journals

 
 
Journals Active search Perceptual Distortion

Active search

 
 

Perceptual

 

Distortion

 
An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar
An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar
An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar

Product organization

Specific

specific

An integrative model for organizational buying behavior Information Source Sales person Trade show Direct mail Seminar

Time

Perceived

Pressure Risk

Type of buying

Precipitation Start of the process has to be the realization of the need, a problem that a purchase can solve. The stimulation could be internal and

entirely routine. It could be a planned new buy precipitated, for example, by the implementation of expansion plans or the imminent production of a new product. It could also be something more sudden and

dramatic than that, such as the failure of a

piece of plant or machinery, or a lack of stock.

Industrial Buying Decision Process.

Financial

Team

End Users ( R&D , Product design, Operation )

Industrial Buying Decision Process. Financial Team End Users ( R&D , Product design, Operation ) Top

Top Management Key decision Maker

Commercial Team ( Value engg, Relationship)

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Consumer Models : Conceptual Consumer models which help in understanding the behavior from information search to decision making while involved in a buying process.

Consumer Models are : Economic Model Sociological model Psychoanalytic model Learning model Howarth Sheth model Engel Blackwell- Kollat Model

Economic model is on the principle that consumer looks for maximum utility at minimal price.

Price effect. Deep discounting or minimum price tags

increases the consumption & demand . Substitute effect. : More substitute products available, lesser will be the demand of the original product.

Income effect. As the disposable income level increases , the consumption level will also go up.

Short coming :

The model ignores the social & psychological impact on the buying behavior , assumes the price is the only factor which drives the buying behavior .

Psycho analytic model :

Behavior of a consumer is determined by his strong desire & need. The purchasing process is governed by motivational forces . Motivation

stimulates people in to buying action.

Self Actualization Esteem (Recognition) Social(Affiliation) class etc Safety (Security) Protection, Physiological ( Basic)
Self
Actualization
Esteem
(Recognition)
Social(Affiliation)
class etc
Safety (Security)
Protection,
Physiological ( Basic)

Sense of achievement & competence

Needs which are important to consumer

Owning Power & Prestige Ego , status , success

Similar belief, status

Assurance ,

stability

Hierarchy of need : Abraham Maslow’s model

Not for circulation : for internal use only

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Learning Model.

Consumer Learning : A process by which a consumer acquires the purchase & consumption knowledge experience which apply to his

future behavior

.

.

Components of learning process are :

Drive

Clue

Response

Reinforcement

Retention.

Drive : strong stimuli which impels action. Clue: An object in the stimuli which elicit a specific response. Response : Behavioral response in the from of physical terms , Attitudes, Perception etc. Reinforcement :Environmental events which increases the psychological process of motivation, increasing the likelihood of specific response. Retention : Stability of learned behavior over a period of time.

Classical conditioning process of learning :

Behavior becomes dependent on certain stimuli or events in the environment. A consumer is said to have learned , when he or she responds in a predictable

manner to a known stimulus. [ Also known as Stimulus - Response ( S -R) theory

of association )]

When a consumer learn to connect between stimuli & response it is Called behavior .This happens due to repetitive association between Stimulus & response .

Unconditioned stimulus

Classical conditioning process of learning : Behavior becomes dependent on certain stimuli or events in the

( piece of meat)

Conditioned stimulus

Classical conditioning process of learning : Behavior becomes dependent on certain stimuli or events in the

Unconditioned Response [ Reflex

( Spontaneous reaction) Dog

Action]

(Pavlov’s experiment of classical conditioning )

Conclusion : Conditioned

stimulus

Classical conditioning process of learning : Behavior becomes dependent on certain stimuli or events in the

Conditioned response

Eg : Desirable association for Johnson soap Ad

Milk & Rose Petals Johnson Little toddler soap
Milk & Rose
Petals
Johnson
Little toddler
soap

Unconditioned

stimuli

Pure , Natural, Soft

& tender

Soft & tender Skin care

Symbolic of natural & purity

Classical conditioning helps to build strong consumer connect with the brand for strong association.

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Sociological model.

Peers & colleague In an organization Close associates Consumer Family members Friend circle
Peers & colleague In an organization

Peers & colleague

In an organization

Close associates

Consumer

Family members

Family members
Peers & colleague In an organization Close associates Consumer Family members Friend circle

Friend circle

Target market is influenced by roll models of the society

who influence the buying behavior . Marketer’s analyze

aspiration level within the target segment & create the

same in the brand to appeal them towards the brand.

Not for circulation : for internal use

only

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Howarth Sheth Model : Consumer learning & behavior shaping

happens due to perception & attitudes which they form about a brand leading to a favorable decision making. Hence a input stimuli leads to learning constructs , which drives

the behavioral output , which in turn is influenced by external

variables.

Input stimuli

  • 1. Tangible ( significant stimuli)

  • 2. Intangible

( Symbolic stimuli )

  • 3. Social group ( Social stimuli )

 

Overt

 
 
Overt Search Stimulus Ambiguity Attention

Search

 
Overt Search Stimulus Ambiguity Attention
Stimulus

Stimulus

   

Ambiguity

Attention

 
Attention
   

Attention

Intention Motives Attitude
Intention
Motives
Attitude

Perceptual

Bias

Purchase

Brand

comprehension

INPUT
INPUT

Perpetual

Constructs

Learning

Constructs

Output

Not for circulation : for internal use only

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E-B-K Model

It comprises of 4 components :

Information process , Control unit ,Decision process

Environment influence

Evaluation

criteria

Perception

Attitude

Income

Culture Social class Others

Exposure

Attention

Comprehension

Retention

E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment
Need stimuli
Need
stimuli
E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment
E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment
E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment
   

Post purchase evaluation

E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment
E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment

Internal & external search

Of alternate

evaluation

Purchasing

Process

E-B-K Model It comprises of 4 components : Information process , Control unit ,Decision process Environment

Not for circulation : for internal use only

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Consumer Segmentation

Consumer segmentation on the basis of lifestyle &

Aspiration helps to understand the persuasive motive

. ( Psychographic segmentation )

Consumer segmentation on the basis of lifestyle & Aspiration helps to understand the persuasive motive .

Inner consumer core

Outer core

Demographics

Consumer segmentation on the basis of lifestyle & Aspiration helps to understand the persuasive motive .

Life stage

Situational

Geographic

Value Soico culture Aspiration

Bajaj Scooter captured complex reality of existence of middleclass India .

As it is said , if an Indian middle class man were to be

reborn as a product , chances are that it would be a Bajaj scooter.

Squat, belly going to pot , wearing grey safari suit,

undistinguished, but resourceful. With his wife perched uncomfortably at the back , Gudiya squeezed between the two, & Cheeku standing in front.

The product literally & metaphorically at the heart of Indian middleclass.

How did it fit in to the life of mass middleclass ?

Consumer Segmentation Approach

AIO inventory ( Activity , Interest , Opinion ) SEC classification VALS II LSM Prism

Monitor Mindbase

Global Scan

Family Life Stage

Family Life stage is studied at :

Bachelor hood status Married couple ( DINK ) Parent hood ( DISK) Post parent hood Dissolution Parent hood is further classified in to Full nest 1 , 2 & 3 stage . Post parent hood is classified in to Empty nest 1 & 2

Each stage depicts a distinct buying behavior & is influenced by other factors which drives the priorities & motivation.

Consumer segmentation

Changing trends: Children hold strong buying power in

key segment.

( Indian kids rank 3rd worldwide in

influencing the buying decision)

Segment

Children Decision maker.

Soft drinks

33.6 %

Health drinks

31.4%

Tooth paste

30.5%

restaurants

28.6%

Sub Segmentation of Kid consumer :

Segment: 1

Infant

  • 2. Toddler

( 1 -12 Months)

( 13 -48Months )

  • 3. Tooth ager

( 4- 5

Yrs )

  • 4. Toonagers ( 6-8 Yrs

)

  • 5 Tweenager ( 8-12 Yrs )

  • 6 Teenager,

(13- 19 Yrs )

[parameters : Age, intelligence( IQ) level , Family group

belonging , societal influence , point of purchase ,

Personality , Self concept. Media influence .

Parenting style

  • 1. Hyper Parenting : Over scheduling children’s lives with extra curricular activities & push them hard for academic excellence.

2.Helicopter parenting : Habit of the parent to hover over their

children obsessed with ensuring their safety . Builds protective attitude where parents keep tabs on their

children’s every move.

  • 3 Stealth Parenting

4. Authoritarian Parenting

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3

Stealth Parenting

4. Authoritarian Parenting

These parenting process influences the child‟s development

in terms of how they involve buying with age. Their

knowledge, attitudes to a brand , pricing & decision making

power etc .

The decision making differs at every stage:

1. Perceptual stage ( 3-7 Yrs )

2. Analytical age (

7-11 )

  • 3 Reflective age

11-16)

A research conducted by Disney India & Group M India

revels that new age Indian kids( 4-14 age group) are Tech savvy , worldly wise ,opinionated & success oriented.

They articulate the brand preference , influence in the

decision making & also make independent decisions on brands.

Data shows that 51% of the total population

researched ( 34000 children across Mumbai, Delhi, Kolkata, Banglaore, Ludhiana, Ahmedabad, Hydrabad, Chennai, Lucknow & Chandigarh) accompany their

parents for shopping. 66% handle money

independently.

48% have their say in the choice of the brand.

Socio- Economic Classification. SEC Segmentation .

SEC divides the house hold on the basis of the CWE’s

occupation & education.

Assumption : The co- relation between education &

occupation was that better education will have organized

employment opportunities, hence high income.

However it

failed to explain the buying behavior of a consumer who buys Dove soap a luxury product for Rs 30, but not well educated .

Accordingly the consumer class will be categorized as :

SEC-A1 , A2 , B1, B2 C1 …

D

.. The same can further be named as :

Class , lower middle Class.

Premium class , Middle

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Other approaches .

Unilever’s proprietary segmentation model. Living standard measurement index. ( LSM) index as an

alternative to SEC . It is based on 25 parameters

putting consumers in to 18 clusters. Parameters are :

Income , Occupation, Durable ownership( daily to luxury ) , Work environment , media choice ,

entertainment preference , cultural sub cultural &

cross cultural factors .

Nup scale ( Nielson Upscale ): It is based on usage of 12 consumer durable products from different category.

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only

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According to a research study , women class has progressed from one Socio economic category to the next on the parameters like traditionalism /self sacrifice to westernization / individualism

. Modern/Westernization Seeking Luxury Out going Fashion conscious I S Bold & librated. n e d
.
Modern/Westernization
Seeking Luxury
Out going
Fashion conscious
I
S
Bold & librated.
n
e
d
l
f
Seeking equality ,quality
conscious disturbed by
vulgarity SEC B
SEC A
i
v
i
S
d
a
SEC C Religious
Anxious & Worried about
change.
u
c
a
r
SEC D
l
i
i
Seeking economy
sacrificing
f
s
& social conservatism
i
t
c
Traditionalism
i
e
c
Variation by SEC group.
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only
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Discovering new identity in Urban woman

The quint essentional

self sacrificing Gharelu married Indian urban woman consumer

is increasingly morphing in to independent minded assertive entrepreneurial class.

( Research study conducted by Lowe Asia Pacific )

Psycho graphically charted consumer segmentation

Stability

seekers

Modern ( willing to embrace new values)

Ms/Mrs Hasmukh 27% (Role model Didi )

Ms /Mrs India

Mrs Meri Awaz Suno

(Attention seekers) 31%

Ms/Mrs Pataka Cool

Ms/Mrs Gharelu 18% ( Home pride)

Mrs Hey Bhagvan

Moaner

Change

seekers

Traditional ( Be contended /compromise with old system)

Mrs Garelu is just 18% of the total sample size. Who are they ? Home pride . A perfect home maker .

Behaviour :

Uses parachute oil for kids & self , Fair & lovely being a part of her make up kit.

She is proud of her washing machine & water filter. She is likely to buy a microwave owen or expensive home appliances. But she prefer to use branded sanitary napkins. Her husband relies heavily on her. Social : She hate wasting money on outing , eating entertainment. Entertainment is all around Jassi & K series . Belief : Strong believer of good education to her kids. Choosing any unknown New career by the family member is not acceptable. Attitude : Family is more important & believes that star determine her fate. Value : Respect can never be compromised. High level of tolerence .

Never address the husband by name .( “Munne ke papa, Suno ji” type ) . Do not

question the roots of tradition, rituals. They are always for good. Just adapt it.

She is Quintessentional sacrificing Maa

Fast moving trend is seen from Mrs Gharelu to Mrs Has mukh

Who is Mrs Hasmukh ?

Attitude: A lively cheerful & positive personality. She treats her life like a must win contest . A friendly nature . Talking to a stranger of opposite sex & accepting him as a friend is normal . A perfect wife, mother , daughter in law , friend , independent minded , divides her time between husband , kids , family herself, & her friends. Not self sacrificing

Belief : While she is religious , she does go to beauty parlour with equal vigour. Usage : She likes to buy things which make her household chore more convenient . Microwave Owen, Dishwasher, Vacuum cleaner , Oriflame conditioner, foot cream, Nourishing night cream products . Social gathering , party with friends , family etc.

She encourages her kid to be more independent,

explore & peruse their career where

you can deliver your best result, like she herself would like to do. She likes to be seen

as trendy .

She is a role model Didi for many women

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Mrs Pataka:

Characterised by the style quotient , acts cool & talks about doing what other

women don‟t. Take pride in sending their kids to the best school in town. Style

matters in terms of regular visit to palour, PTA , Social meet , week end party &

dining , need varieties of perfume

for different occasion. She expects her husband

to consult her in all decisions & upholds her individualism.

Attention seekers: Stifled by the various restrictions & norms imposed on her craves for attention, likes when others empathise with her .Her husband does not

necessarily take her opinion in all home related issues. Saving is not her forte. Will

use fairness cream , oil her hair on daily basis. She hopes high expectation on her son& daughter. She does not mind using unbranded or lesser known brands still feel good about herself.

She feels miserable about her inability to send her kids to expensive schools, lavih spending .She believes that fate is determined by her stars. She wants to come out of middle class dudgery. More of self sacrificing type & wants to move away from joint family class.

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The HEDONIC TREADMILL ( Daniel Kahneman- Nobel Prize winner Economist & Psychologist)

Studies show that happiness rises with income up to a certain point

at which the basic needs are met, after which it stagnates as

aspirations also rise with income.

Consumer

Satisfaction

The HEDONIC TREADMILL ( Daniel Kahneman- Nobel Prize winner Economist & Psychologist) Studies show that happiness

Income

Summary of Profiles

West Religious yet outward centric

Worried about change

Materialistic value

North

Impressionable

Conservative

South

East

Quality conscious

Anxious about future

Guilt if spending on self.

Bold , more librated,

Accept society as it is , Optimistic

Discontented willingness to experience new

Rural , Urban , Global , Semi rural , Semi Urban leading to life style, climate , population etc.

Institutional segmentation

: Large corporate segment ( Global &

Domestic) , SME , SOHO , FTU Govt, PSU etc

Role of culture in

consumer behavior

Culture Culture is part of the external influences that impact the consumer. Culture represents influences that are

imposed on the consumer by other individuals.

Culture is

a complex study which includes knowledge,

belief, art, morals, custom, and any other capabilities

and habits acquired by a person as a member of

society Culture, as a "complex whole," is a system of interdependent components.

Knowledge and beliefs are important parts.

In U.K exposed hands or legs among women in , social gathering is reflected immoral.

formal

In Japan, on the other hand, groups of men and

women may take steam baths together without perceived as improper.

What at least some countries view as moral is in fact be highly immoral by the standards of another country.

Culture has several important characteristics:

(1) Culture is comprehensive. This means that all parts must fit together in some logical fashion.

(2) Culture is learned rather than being something we are born with.

(3) Culture is manifested within boundaries of acceptable behavior.

(4) Culture is gratifying & persistent .

(5) Culture is integrated & organized.

(6) Culture is acquired.

Culture can be viewed from independent levels as:

1. Ideological systems. : Mental system consisting of ideas, belief, values & ways of reasoning.

Cognitive ( beliefs, customs)

Normative ( conduct & norms )

2.

Organizational system ( Family & Social class ) .It

coordinated behavior .

  • 3. Technological system : ( Skills & techniques used to

behave in a particular way)

Variation in culture happens when the values ,norms belief , moral, ritual, custom , Tradition etc influencing ideological , organizational & technological system are

questioned by the consumer for its existence & sanctity

to be followed.

When these factors are vulnerable to change , variation

in culture is natural process.

Nonverbal factors influencing cultural variation

SYMBOLS

COLORS

NUMBERS

What is Semantic & symbiotic culture ?

Deer is a Symbol of homosexuality in Brazil . Owl Symbol of wisdom in US Number 4 is in auspicious in Japan & 10 & 13 th in south India etc.

Culture, Subculture , Cross culture influence in

Buying behavior

Nationality legal barrier

SUB Cultural influence

system system Ideological Organizational
system
system
Ideological
Organizational

Language

Ethnic

Cast

Religious

Cross cultural influence

Understanding the culture of a market can help to formulate more effective

communication strategy to overcome the

barriers to acceptance.

Low diffusion rate of a product is primarily

due to resistance to accept a concept on

account culture .

All teaser communication campaigns are built

to break the cultural barriers .

Consumer personality &culture

All 30 days same Confident , Independent & Symbols freedom Heroes Cloth usage Rituals Value Practice
All 30 days same
Confident ,
Independent &
Symbols
freedom
Heroes
Cloth usage
Rituals
Value
Practice
Family values
Hush Hush Culture

Perception & Attitude formation

What is the role of perception in consumer buying ? Mind base positioning of product or service .

Perception is psychological mediation. It refers to the process of organizing and interpreting sensory information.

Perception is the process in which the brain selects,

organizes, and interprets neural messages into a

psychological experience on the basis of cognitive ability and soico cultural values governing in the society .We are aware of the meanings that brain generates

from sensory information.

Perception enables us to recognize meaningful objects, pictures, faces, language, etc & interpret the same the

way we want.

Sensation drives perception.

Psychological mediation

LBS
LBS
Sensation drives perception. Psychological mediation LBS RBS Sensory stimuli Visual , Audio , Taste, Smell, Touch
RBS
RBS

Sensory stimuli

Visual , Audio , Taste, Smell,

Touch

Marketing science behind perception management is to identify right sensory stimuli which would invoke desired decision within consumer ( logical or abstract ) . This depends

on the positioning objective .

A research presented by scientist Martin Lindstrom reveal the conceptual essence of senses as a source of attitude formation and change.

A research presented by scientist Martin Lindstrom reveal the conceptual essence of senses as a source

While Sensation is a physical process of converting stimulus energies, without sensation, there would not be perception.

Perception co-relates , integrates & comprehends the various sensations & information received . It is

formed by both physiological & psychological

factors.

Perceptual constructs

Stimulus

Perceptual constructs Stimulus ambiguity Perceptual bias Perception Stimulus ambiguity : Interpretation of information provided according to

ambiguity

Perceptual bias

Perceptual constructs Stimulus ambiguity Perceptual bias Perception Stimulus ambiguity : Interpretation of information provided according to

Perception

Stimulus ambiguity : Interpretation of information provided according to selective preference.

Ambiguity happens due to social values prevailing in the society acting as a constraint for accepting the product/service. When the community values wins over social values, the product gets accepted in the society .

Positioning of emergency contraceptive pill as “ Protection

when things go wrong at the heat of the moment”.

In the backdrop of social norm which claims the communication is obnoxious ( promotes premarital sex & acclaimed moral looseness ) , the success comes as it helps to

overcome the mass murder of life and self protection.

Perceptual bias : Attending to the selective information as a result

of one‟s own frame of reference.

Perception is a process of selecting, organizing & interpreting or attaining the meaning of what is happening in the environment.

Thresholds and Absolute thresholds

A threshold refers to a dividing point between energy levels that do and do not have a detectable effect.

. What happens to one’s threshold as the stimulation

increases? As the stimulus intensity increases, the probability of detecting a stimulus also increases.

Absolute thresholds define the boundaries of sensory capabilities. An absolute threshold refers to the intensity level at which the probability of detection is 50 percent. What are some of the lowest absolute thresholds discovered in psychophysics research?

“Weber‟s Law. Weber‟s law states that the magnitude of differentiation

is

a constant proportion of the size of the initial stimulus. The

constant proportion is called “Weber‟s Fraction.”

Techniques to form good Perception within consumer :

Signal detection

Just noticeable differences (JND’s)

Subliminal perception

Sensory adaptation

Selective attention

Merlyn :

Wao ! What a position ?

Bob

:

What a figure .

James :

Irresistible, I am excited.

Sandra : I wish I am in that position.

Tom :

I envy you ?

Apply for the position of Creative Designer in life

style apparel segment . Annual emolument : 16 Lacs

Only lady candidate may apply.

JND : Just Noticeable Difference . ―JND‖ refers to the

smallest difference in the amount of stimulation that a specific sense can detect.

Selective attention refers to our focusing on a limited aspect of all that we comprehend, enjoy ,

and experience .

This explains why cell phones are dangerous

when driving. We focus on the phone

conversation and not the other sights and sounds on the road.

Not for circulation : for internal use only 79

Subliminal perception

Subliminal perception refers to “below threshold.” Subliminal perception is the registration of sensory

input without conscious awareness. subliminal perception techniques are used by media to grab the attention using money , sex as strong stimulator.

SILK CAMISOLE SET

SILK CAMISOLE SET

Short Kimono

Short Kimono

Behavioral researchers agree that sought benefits and consumer perception are the main antecedents of brand preferences, which is as follows:

BP =PA + CP

Where:

BP - Brand preferences

PA - Product attributes

CP - Consumer perception

Internal Factors

Selective attention

Selective Exposure Selective reception,

comprehension &

Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation
Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation

retention,

Perceptual vigilance

or defense Expectation

Subliminal perception

External Factors

Intensity& Size

Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation

Position

Contrast

Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation
Internal Factors Selective attention Selective Exposure Selective reception, comprehension & retention, Perceptual vigilance or defense Expectation

Novelty

Repetition

Movement

Both internal & external factors influence the perception of the buyer

Blind test of Coke & Pepsi

Pepsi preference population 51 %

coke

44 %

equal /can‟t say

5%

Identity revealed test

Pepsi

23%

coke

65%

equal/can‟t say

12%

Conclusion : Both internal & external factors influence the way in which an individual perceives a product or brand.

Perception drivers in consumers

Cultural factors

What buyer‟s feel

 

acceptable norm in the society

Core values which drives

the consumer

 

What motivates the consumer's Life style

Social factors

The way consumer relates & draw meaning of some thing.

Psychological factors

Personal factors

Semantic perception and synthetic perception

concepts.

Consumer Attitude Study

Consumer Attitude

In consumer behavior context , attitude is a learned pre deposition

to behave in a consistently favorable or unfavorable way with

respect to a given stimuli. (Brand )

Learned deposition refers to information source , perception ,

experience , exposure to media etc which helps to build an attitude

& gives momentum to the behavior . The momentum can be negative or positive.

Consistency refers to the voluntary decision ( Compulsive buying

) which makes the consumer to purchase the product/ service /

brand till such time there are no intervening factors which force the consumer to change the attitude.

Two school of thoughts in Attitudinal theory

1 . Insights on product usage :

Attribution theory focuses on how consumer assign causality to events and how they form or alter attitudes as an outcome of assessing their own behavior, or the behavior of other people or things.

Dove communication is built on the product insight that soap dries

skin , but Dove doesn‟t because of its moisturizing content to

nourish the skin.

Cognitive dissonance theory : Anglo Saxon View ( Western theory)

and Non Anglo Saxon View ( Eastern cultural rich view ) Theory suggests that the conflicting thoughts, or dissonant information, that follow a purchase /acceptance decision might

propel consumers to change their attitudes to make them consonant

with their actions.

Anglo-Saxon view : It is one big market world over and

consumers across are same with same motivation . Nike‟s approach to market with “Just Do it” is based on the fundamental that to win is a common motivation across.

Non Anglo Saxon View ( Eastern cultural rich view ) Among many others , brands that has successfully shifted the attitude of market are :

Fair & Lovely ( HUL) i -pill ( Cipla ) , Cadbury dairy Milk etc .

Failed to shift the attitude are :

Communication on Amul Macho inner wear & Chocolate flavor

Axe effect male deodorant .

While promoting male contraceptive products are unobjectionable,

why emergency contraceptive pill for women invited obnoxious response?

Can marketer‟s create an attitudinal shift towards mild alcohol

filled chocolate

in Indian market ?

Can marketer‟s create an attitudinal shift towards Toilet roll paper

in Indian market ?

The toilet paper is a large industry in US . Twenty-six billion rolls of toilet paper, worth about US$2.4 billion, are sold yearly in America alone. Americans use an average of 23.6 rolls per capita a year.

Moist toilet paper was first introduced by the Kimberly-Clark in the United Kingdom in the 1990s, and in the United States in 2001, two countries in which bidets are rare. It is designed to clean better than dry toilet paper after defecation.

The 16th century French satirical writer François Rabelais in his series of novels Gargantua and Pantagruel, discussing the various ways of cleansing oneself at the toilet, wrote that:

"He who uses paper on his filthy bum, will always find

his ballocks lined with scum", proposing that the soft feathers on the back of a live goose provide an optimum cleansing medium .

The disposable paper products market in India is

limited to sanitary protection and incontinence

products, which continue to form the bulk of the sales

of disposable paper products in India. Mass media advertising as well as below-the-line consumer

outreach activities are the key growth drivers

alongside rising concerns about health and hygiene as well as growing purchasing power .

An attitudinal shift of the market happens when , positioning

invokes beliefs , establish liking & induce a stimuli for buying

known as tri-component

model.

.

Tri component Attitude model:

1 Cognition component

2 Affective

3 Conation

Cognition

An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking &
An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking &

Conation

An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking &

Affect

An attitudinal shift of the market happens when , positioning invokes beliefs , establish liking &

96

1.A positive or negative belief ( myth, Superstition, taboo, strong reference opinion, Right or wrong product/service information

from authentic source )

As consumers hold many beliefs about a

product or service, it is difficult to decide which belief influence

the buyer‟s attitude most.

Hence Multi-attribute ( known as the Fishbein) Model attempts to

summarize overall attitudes into one score using the equation:

1.A positive or negative belief ( myth, Superstition, taboo, strong reference opinion, Right or wrong product/service

For each belief, take the weight or importance (Wi) of that belief and multiply it with its evaluation (Xib).

For example, if a consumer believes that coffee can help to

overcome metal fatigue by partially energizing ,hence gives the

importance 4 on a scale of

1 to 7.

He or she believes that coffee can energize better than tea, hence

rates 6 on a scale from 1 to 7. Thus, the product here is 4(6)=24.

On the other hand, he or she believes that coffee consumption is

bad for health, hence rates 2.

Coffee has high caffeine content hence bad for health, thus rates 1 . Now we have 2(1)= 2. Had these two beliefs been the only beliefs the consumer held, total, or aggregated, attitude would

have been 24+(2)= 26. If required the scale can be extended from

-7 to +7 .

Since the second belief & evaluation factor is weak,

it will

negate the buyer‟s decision towards coffee.

In practice, of course, consumers tend to have many more beliefs

that must each be added to obtain an accurate measurement.

Affect . Consumer‟s feeling & emotions associated with the brand.

Consumers hold certain feelings toward brands . These feelings are based on the beliefs (e.g., a person feels nauseated when thinking about a hamburger because of the tremendous amount of fat it

contains), but there may also be feelings which are relatively

independent of beliefs.

Behavioral Intention. The behavioral intention is what the

consumer plans to do with respect to the object (e.g., buy or not buy

the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances-- e.g., although a consumer does not really like a restaurant, he or she

will go there because it is a hangout for his or her friends.

The Attitude shift is for :

1.Utilitarian Function 2.Ego-defensive Function

3.Value-expressive Function

4.Knowledge Function

  • 1. Utilitarian Function

Favorable attitude towards a brand happens because it has high

usage imagery . Marketers may stress the utilitarian feature or may suggest uses of the product that may not be obvious.

2. Ego-defensive Function

Products that we purchase to protect our self-images, to replace our sense of insecurity with personal confidence.

Techno savvy image , flamboyant image etc

  • 3. Value-expressive Function

Consumer's express personal values through the brands they

purchase and own .Marketers often attempt to identify their brands with these values.

“Fairness is a symbol of beauty & helps to gain success

corporate” .

  • 4. Knowledge Function

Consumers feel the strong need to know and understand how the

brand can be put to application or support & justify her decision

of buying .

Attitude change strategies Change Belief ( Add belief , Change currently held , change importance of belief.)

Change Affect

Change Behavior

Approach

1.Comparative advertising

  • 2 Hyperbole statement .

3. Emphasizing Brand Attributes ( USP)

Attitude & persuasion

Persuasion : A series of psychological processes mediating perception , comprehension , agreement , retention , retrieval & decision making using vital cue.

Primary route of persuasion .

Secondary route of persuasion

Not for circulation : for internal use only

103

Secondary route to persuasion is more acceptable while

evaluating and structuring emotionally based attitude to a

brand as it is possible to affect consumer‟s attitude by simply

changing his convictions after the impact on his emotions.

Communication, directed towards senses will attract

consumer‟s attention which will change existing convictions,

behavior and ultimately attitude. Such conclusions forms an

assumption that the formation of consumer attitude to a brand,

applying secondary route of persuasion is an appropriate method when the level of involvement in communication is low

as this does not require a lot of effort form a consumer‟s side.

Elaboration Likelyhood model :

( ELM) explains the way the consumer respond to communications or messages.

According to ELM attitude formation or change process

depends on the amount & nature of elaboration or processing of

relevant information.

ELM is a function of Motivation

Ability to process the message. Motivation depends on the involvement , personal relevance, individual needs & arousal levels.

Ability to process depends on knowledge & its relevance &

opportunity to use.

Message Temporary Attitude shift Retain original Attitude Yes Yes Motivated to No process Persuasion Cue present
Message
Temporary
Attitude shift
Retain original
Attitude
Yes
Yes
Motivated to
No
process
Persuasion
Cue present
No
Yes
Ability to
process
No
ELABORATON
PROCESS
Neutral
Cognitive processing

Cognitive structure

Change

Message Temporary Attitude shift Retain original Attitude Yes Yes Motivated to No process Persuasion Cue present

Attitude change change +ive

Message Temporary Attitude shift Retain original Attitude Yes Yes Motivated to No process Persuasion Cue present

Not for circulation : for internal use only

106

Client: Asian Paints Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software to choose and select 1,511 shade combinations, designed to reach consumers in a direct `dil se' style.

Advertising Objective: Position Asian Paints Colour World as

the „one stop paint shop‟ with all the colours one could want.

The advertising should create enough interest in potential consumers to ensure that they come to the Asian Paints Colour World outlet or at least call the Asian Paints helpline.

Target Audience:

Demographics Region: India, urban population Occupation: Service/working professional/self-employed Gender: Insignificant Religion: Insignificant Social class: Upper Middle and upwards SEC: B and upwards Family life cycle: Middle aged Behavioural

Occasions: When looking to paint the interiors of his house (usually there is an upsurge with new construction and during festive seasons like Diwali and Holi)

User status: First time user Loyalty status: Not defined Readiness Stage: Relatively informed Attitude toward product: Low-involvement Attitude toward brand: Trusting, has high-recall value

· Consumer Research.

Consumer research noticed that during the phase of getting their house painted, consumer

look for just the right shade and are prone to

collecting samples to visually show their painter exactly what they had in mind. But

always they are unable to

express verbally.

Using this insight , the concept of mera wala

pink ,meral wala cream and green was conceptualized.

Core thought

Asian paints is about people who invest emotional energy in creating their homes

Asian Paints is about homes which reflect

the taste and love of their owners/residents

Brand Image

Brand image is the collective perceptions of customers

about an organization‟s brand positioning efforts

An organization's positioning efforts create a brand‟s image by overcoming information clutter, in most cases minimal interest, and limited mental capacity.

The goal is to produce a “road map” of how and where the brand fits into a person‟s cognitive framework.

Brand Loyalty :

Brand loyalty is a function of attitudes and behavior. It is an attitudinal predisposition favoring a brand and a pattern of purchasing

that brand regularly.

McGuire‟s theory of personality & persuasion .

It focuses two aspects : 1. Reception ( Perception & comprehension )

2. Yielding ( agreement )

It states that the personality is related to these two aspects in

opposite way.

The personality trait which increases the reception decreases

yielding.

Attitude change ( AC) is a function of a multiplicative relationship between reception ( R) & Yield (Y) .

AC= R X Y

.

Since IQ is one of the important factor for persuasion, higher the IQ in a consumer the R factor is bound to be high. But the yield is low in this case because it requires rigorous evidence to influence. Ac= R X 0 = 0

Similarly when the IQ is low, R factor is low since individual finds it

hard to understand the persuasive message . However the yield factor is high because he is gullible & accepts it easily .

Yielding Very Likely Reception Likelihood Of response Attitude Change Not likely at all High Low
Yielding
Very Likely
Reception
Likelihood
Of response
Attitude Change
Not likely at all
High
Low

Not for circulation : for internal use only

Attitude

119

Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting & relevant ie the consumer take time to understand it is said to follow a central

route of persuasion. ( strong reason & argument to support & hold a

particular attitude &opinion. )

On the other hand , peripheral route to persuasion implies, very little

or effort to think, involve , or inclination. In such case the attitude

formation towards the brand is on the basis of peripheral clues .( back ground music , pictures etc. )

Exposure to AD

Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting &

Motivation to

Elaborate

Peripheral

Route

Low

Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting &
Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting &

High

Ability to elaborate

Central Vs Peripheral Route to persuasion. Central route to persuasion: When an ad is interesting &
Central Route
Central
Route

Not for circulation : for internal use only

120

FCB Grid used to change the attitude of a buyer

.

Involvement = f ( Personal , situational , Product attribute )

High

Perceived

brand

differentiation

Low

High Product Involvement Low Learning Model Low involvement model Cognitive Cognitive Affective Conative Conative Affective Dissonance
High
Product Involvement
Low
Learning Model
Low involvement
model
Cognitive
Cognitive
Affective
Conative
Conative
Affective
Dissonance Model
Conative
Affective
Cognitive
Not for circulation : for internal use
only

121

A research by Wharton marketing & Stanford marketing professors Cassie Mogilner & J.Aaker argues that when companies weigh which theme to be

used while communicating the brand to invoke

attitudinal shift in consumer , Time theme over money theme proved more effective.

Further it was studied to what extend it is linked to

consumer’s personal experience, emotion and identity

, which is responsible for attitudinal shift . A lemonade stand experiment .

Conclusion of the experiment : Brands can cultivate

consumer relationship by first considering how consumers identify with the product ( through experience or possession ) & then highlighting either

the time or money spent accordingly.

Attitude shaping through media communication

Relationship of attitude with communication

Brand communication Judgment about Brand Feeling about Brand Benefit analysis Belief about the brand Attitude towards
Brand
communication
Judgment about
Brand
Feeling about
Brand
Benefit analysis
Belief about the
brand
Attitude towards the
brand
Not for circulation : for internal use
only
123

Innovation & diffusion

Diffusion of Innovations is a theory of how, why, and at what rate new ideas and technology spread through cultures.

An individual or an organization/social system bases the type of decision on whether an innovation is adopted/rejected.

The three types of innovation-decisions are: Optional innovation-decisions, collective innovation-decisions, authority innovation-decisions.

1.Optional Innovation-Decision

This decision is made by an individual who is in some way

distinguished from others in a social system.( Role model)

In mid '80s the woman in the Surf Ad got a name - Lalitaji - and was

brought to life on television by Kavita Chaudhary in a TV commercial

with the tag line “ SURF ki Kharidari mai hi Samajdari hai ( It makes better sense to buy Surf)”. They were fighting a soapy detergent war

against Nirma. Nirma, in turn, had found an icon of its own in a young little girl swirling around in a skirt the Nirma girl. The Ad jingle for Nirma was the clincher:

“Washing powder Nirma, washing powder Nirma

Dudh si safeedi, Nirma se aaye Rangeen kapda bhi khil khil jaye

Thoda sa powder aur jhag dher sara Rekha, Jaya, Geeta aur Sushma

Sabki pasand Nirmaaaa. Washing powder Nirma. Nirma.”

2.Collective Innovation-Decision

This decision is made collectively by all individuals of a

social system.

3.Authority Innovation-Decision.

This decision is made for the entire social system by few

individuals in positions of influence or power.

Five stages of innovation decision are :

knowledge, Persuasion, Decision, Implementation,

confirmation.

What What is motivates online What will Online banking make him What motivates him to banking
What
What is
motivates
online
What will
Online
banking
make him
What motivates
him to
banking
try?
shift ?
Does it enhance

consumer’s present

Way of doing things ? Y/N

Knowledge

In this stage the individual is first exposed to an innovation but lacks

information about the innovation. Hence during this stage the individual has not been inspired to find more information about the

innovation.

Persuasion In this stage the individual is interested in the innovation and actively seeks information/detail about the innovation.

Decision

In this stage the individual takes the concept of the innovation and weighs the advantages/disadvantages of using the innovation and decides whether to adopt or reject the innovation.

Implementation

In this stage the individual employs the innovation to a varying

degree depending on the situation. During this stage the individual determines the usefulness of the innovation and may search for

further information about it.

Confirmation: Individual apply the concept to his daily life.

The rate of adoption is defined as the relative speed with

which members of a social system adopt an innovation. It

is usually measured by the length of time required for a

certain percentage of the members of a social system to adopt an innovation

Adoption

Time
Time

Adoption of an innovation follows an S curve when plotted over a length of time

Adoption Curve :

Due to initial resistance to accept the change

in the daily life, social system will

oppose

the innovation , unless innovation is strongly

aspiring ( persuasive motive ) the market to

adopt the innovation.

Hybrid corn was adopted only slowly among many farmers. Although hybrid corn provided yields of about

20% more than traditional corn, many farmers had difficulty

believing that this smaller seed could provide a superior harvest. They were usually reluctant to try it because a failed harvest could have serious economic consequences,

including a possible loss of the farm.

Agricultural extension agents then sought out the most progressive farmers to try hybrid corn, also aiming for farmers who were most respected and most likely to be

imitated by others. Few farmers switched to hybrid corn

outright from year to year. Instead, many started out with a fraction of their land, and gradually switched to 100% hybrid corn when this innovation had proven itself useful.

Forces which would work against innovation are :

  • 1. socio cultural ( ideology of the market )

2.

financial constraint

  • 3. Technological culture.

Birth control pill is incompatible with strong religious

influences in countries heavily influenced by Islam or

Catholicism .

Electric razor : Indian shaving skill is incompatible with the

dry shaving concept mooted by the product.

The characteristics which determine an innovation's rate of

adoption are:

(1) Relative advantage : It is the degree to which an innovation is perceived as better than the idea it supersedes.

The degree of relative advantage may be measured in

economic terms, but social prestige, convenience, and satisfaction are also important factors. It does not matter so much if an innovation has a great deal of objective advantage.

What does matter is whether an individual perceives the

innovation as advantageous. The greater the perceived relative advantage of an innovation, the more rapid its rate of adoption will be.

(2) Compatibility is the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters. An idea that is incompatible with the values and norms of a social system will not be adopted as rapidly as an innovation that is compatible. The adoption of an incompatible innovation often requires the prior adoption of a new value system, which is a relatively slow process.

(3) Complexity is the degree to which an innovation is perceived as difficult to understand and use. Some innovations are readily understood by most members of a social system; others are more complicated and will be adopted more slowly. New ideas that are simpler to understand are adopted more rapidly than innovations that require the adopter to develop new skills and understandings.

(4) Trialability is the degree to which an innovation may be experimented. New ideas that can be tried on the phased

manner will generally be adopted more quickly than innovations that are not divisible. An innovation that is trialable represents less uncertainty to the individual who is

considering it for adoption.

Role of tryvertising as an execution strategy building adoption rate ?

(5) Observability is the degree to which the results of an innovation are visible to others. The easier it is for

individuals to see the results of an innovation, the more

likely they are to adopt it. Such visibility stimulates peer discussion of a new idea, as friends and neighbors of an

adopter often request innovation-evaluation information

about it.

Other Cultural dimensions influencing to adopt new products more quickly than others are:

Modernity: The extent to which the culture is receptive to new things. In Britain and Saudi Arabia, tradition is highly valued—thus, new products often don’t fare too well. The United States, in contrast, tends to value progress.

The concept of modern Japanese toilet based on vacuum driven, deodorized, auto cleaning of base fail to connect UK market .

Homophily: The more similar to each other that members of a culture are, the more likely an innovation is to spreadpeople are more likely to imitate similar than different models. Small car concept picked up well in India as average height of Indian men ranged between 5.5 to 5.8 ft.

The strategy used by the brand owners to induce early adoption in the market : identify an highly respected

individuals ( Innovators ) within a social network,

creating an instinctive desire for a specific innovation. Inject an innovation into this group of individuals who

would readily use an innovation, and provide positive

reactions and benefits for early adopters of an

innovation. The categories of adopters are:

Innovators Early adopters Early majority Late majority Laggards

The bell shaped curve illustrates the rate of adoption of

a new product.

The saturation point is the maximum

proportion of consumers likely to adopt a product.

The bell shaped curve illustrates the rate of adoption of a new product. The saturation point

(1) Innovators 2.5% (2) Early adopters 13.5% (3) Early majority 34% (4) Late majority 34% (5) Laggards 16%

Cumulative adoptions are reflected by the S-shaped curve.

Cumulative adoptions are reflected by the S-shaped curve. ATM cards diffused quickly in the market .Retail

ATM cards diffused quickly in the market .Retail banking

segment enjoyed the benefit of this in lowered cost of

servicing the client. ( Move from branch banking to ATM

banking )

Since the cards were used in public, others who

did not yet hold the cards could see how convenient they

were. Although some people were concerned about security, the convenience factors emerged as a decisive factor in the ―tug-of-war‖ for and against adoption.

The product life cycle (PLC) is tied to the phenomenon of diffusion of innovation. When a new product comes out, it is likely to first be adopted by consumers who are more innovative than others. It is important for a brand to create innovators since many other later adopters will tend to rely for advice on the innovators who are thought to be more knowledgeable about new products for advice.

The product life cycle (PLC) is tied to the phenomenon of diffusion of innovation. When a

Time

Revenue

Food for thought

1.Assuming all technical issues with Broadband /Internet providing TV (Web-TV, Cyber-TV, Cable-TV and so on) have

been solved and there is no regulation elements, will

people adopt to ip TV mode ? If yes, Why ? when?

If packaged tender coconut water is made available by a

leader in FMCG sector to the mass India, will people

adopt?

Why ? / Why not ?

Self image .

Self image is composed of the attitudes a consumer holds towards herself due to internal & external stimuli .

Life style of a consumer is an outward expression of

one’s self concept.

Life style drives & involves the consumer in buying

decision of

a specific brand of product or service.

Therefore Self image is defined as the totality of an individual's thought & feeling having reference to herself or him self .

Research shows that Self image categorized in two levels.

can be

1. Independent Self concept

( Separateness )

2. Interdependent Self Concept. (Connectedness)

Independent self concept. It is based on the fact that individuals give more importance to their personal values & goal, , egocentric , autonomous, self reliant & self contained.

Interdependent Self Concept. It is based on the fact that individuals give more

importance to their society ( family values ,

social pressure & social relationship). Such consumer demonstrate socio centric , holistic , connected & relationship oriented approach in their behavior.

Self Congruity :

Self-congruity represents the degree of similarity between consumer‟s self-image or self-concept and that of brand. The degree of consistency between the self-image and brand

image is self-congruity .

The four aspects of self-concept compose the global self-

image, which influence consumer choices of brands through

self-image with brand image congruity.

Self Concept and Brand Self-congruity

Personality as a predictor of self-congruity has a natural

extension of the self-concept/Self-congruity theory because,

both constructs are closely related to each other . Self-concept

is often viewed as a component of personality. Research shows that there is a positive association between self- concept and brand image.

The greater the congruity between the human characteristics that consistently and distinctively describe

an individual's actual or ideal self and those that describe

a brand, the greater the preference for the brand (Aaker).

Self-concept is hypothesized to consist of four components,

actual self-concept, ideal self-concept, social self-concept and private self-concept .

Within this framework, actual self-concept refers to the present way in which individuals perceive themselves (reality), whereas the ideal self-concept represents the

manner in which they would like to perceive themselves.

Social self-concept represents the way individuals believe others perceive them, while private self-concept represents

the way the individual desires to be perceived by others.

Actual Self concept &

Ideal Self concept : Who I am

now & Who I would Like to Be‖ ( Ideal self concept) .

Men’s formal brand presently, wants to be a brand for

both men & women .

Private Self Concept and Social Self Concept : How I

want others to see me & how others see me ( Social

Self Concept.)

Brand wants to be known as rugged ,rough & tough.

( Private self)

Market consider brand as mild & meant for occasional

use.

( Social self )

Self concept

Why perception gap, Identity gap, personality gap & position gap is well understood by

getting the insight of market’s self concept.

Perception

Identity

gap

gap

Personality

Position

gap

gap

Measuring Self concept. self concept helps to position the brand firmly & appeal the consumer.

Mother is perceived to be caring for her children.

5

4

3

2

1

Fully

partially

Agree

Somewhat

Donot

Agree

agree

agree

agree

A corporate citizen want to portray professional & confident in work.

5

4

3

2

1

Fully

partially

Agree

Somewhat

Donot

Agree

agree

agree

agree

House wives see washing machine as time saving

appliance

5

4

3

2

1

Fully

partially

Agree

Somewhat

Donot

Agree

agree

agree

agree

Self concept is measured using Semantic Differential Scale. The scale helps to describe ideal, actual, private & social concepts of an individuals & thus can be mapped

on the image of the brand or useful characteristics in

marketing communication.

Tick which word describes your washing machine most appropriately

 

Rugged

___

Delicate

___

Complex

Simple

Contemporary

___

traditional

Consumer Personality

An eagle’s egg was placed in the nest of a prairie chicken. The egg got

hatched & the little eagle grew up in the surrounding of a chicken. It

scratched in the dirt for seeds , clucked & cackled. It never flew more than a few feet. One day an environmentalist saw the eagle with the

chicken & persuaded the owner to let it free . The eagle is

not meant to

be on the ground, the sky is it’s world. The owner said, ― It is doing

what it has learnt from its friend‖. You may try . Let it

fly high

in the

sky, to never return again . The environmentalist tried , took it high on a mountain , held up & said the sky is your world go . The eagle flew a few meters & came back on the ground. In spite of repeated attempts the eagle could not fly.

He brought it back & put it back with the chicken. It flapped its wings & got back to the dirt's to find the seeds to feed itself.

What is the moral of the story ?

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153

Origin of personality

Personality

development

Behavior

Genetic

Determinants

Origin of personality Personality development Behavior Genetic Determinants Parental Determinants Experimental Determinants External Determinants based on

Parental

Determinants

Origin of personality Personality development Behavior Genetic Determinants Parental Determinants Experimental Determinants External Determinants based on

Experimental

Determinants

External Determinants based on social, cultural

Race, religion etc.

Development of

Stable personality

Characteristics.

Origin of personality Personality development Behavior Genetic Determinants Parental Determinants Experimental Determinants External Determinants based on

Individual

differences in behavior

Consumer personality

Consumer personality Motivation Self image Temperament Attitude Perception Learning Behavior Consumer tries to see her personality

Motivation

Consumer personality Motivation Self image Temperament Attitude Perception Learning Behavior Consumer tries to see her personality

Self image

Temperament

Consumer personality Motivation Self image Temperament Attitude Perception Learning Behavior Consumer tries to see her personality
Consumer personality Motivation Self image Temperament Attitude Perception Learning Behavior Consumer tries to see her personality

Attitude

Consumer personality Motivation Self image Temperament Attitude Perception Learning Behavior Consumer tries to see her personality

Perception

Learning Behavior

Consumer tries to see her personality through the brand she owns & justify the reasons for owning it.

If brands fail to communicate the personality to the target

audience, it will find difficult to attain the position in the mind of the consumer.

The commonly referred personalities types are :

Innovative type : Consumers are attracted to new types of

product & service & also whenever the existing product is

modified & marketed the innovative type gets attracted to it . Eg Mobile, Multimedia desktop, laptop . Hotel service,

tourism service. Etc

Dogmatic Type : Consumer prefers to stay with tested product & shrinks away from unfamiliar & new product.

Inwardly directed : Buying decision is more based on self

thinking.

Outwardly thinking : Consumers are excited to buy when he/she

is told that many others are doing so.

Personality can be defined as the consistency of interaction

towards a person‟s external and internal stimuli (Fiske).

Research background :

Thurstone conducted psychological factor analysis of 60

personality terms & came up with 5 common factors. Cattell

followed Thurstone‟s method & came up with a more complex

set of personality variables, known as 16 Cattell Personality

Factors (PF). Other researchers, including Fiske and Digman,

did a follow up study by analyzing Cattell‟s 16 Factors and found

out that only 5 factors are proven to be replicable across different context . This research, gave birth of „Big Five‟ in

personality theory

The Big Five theory has been tested across

.. different cultural contexts and considered as one of the most

systematic and reliable personality constructs.

The Big Five Model explains individual differences using a trait analysis approach. “Big Five” personality test is regarded as Dimensional/Galilean rather than Categorical/Aristotelian

approach. The Big Five aims to explain individual differences based

on several dimensions rather than putting people into boxes of

personality categories, which enables researchers to examine individual differences based on different trait factors.

Factors considered in BIG FIVE MODEL:

(1) Neuroticism : It assess an individual‟s prone to psychological distress, unrealistic ideas, excessive cravings or urges, and maladaptive

coping responses. A person who has high score in neuroticism dimension is considered unstable and emotional.

(2) Extraversion: It assesses an individual‟s quantity and intensity of interpersonal interaction and activity level. A person who scores high in extraversion dimension is likely to be adventurous and energetic .

The high scorers tend to be sociable, active, talkative, person-oriented, optimistic, fun-loving, and affectionate.

(3) Openness : It assesses an individual‟s proactive seeking and appreciation of experience for its own sake, toleration for, and

exploration of the unfamiliar. The high scorers tend to be curious, creative, original, imaginative, and untraditional.

(4) agreeableness : It assesses an individual‟s quality of interpersonal orientation along a continuum from compassion to antagonism in

thoughts, feelings, and actions. The high scorers are likely to be soft- hearted, good-natured, trusting, helpful, forgiving, gullible, and

straightforward.

(5) Conscientious : It assesses one‟s degree of organization, persistence, and motivation in goal-directed behavior. The high scorers of this dimension tend to be organized, reliable, and hard working.

In Big Five construct , consumers are grouped into 5 dimensions. Scores

on NEO PI-R (Neuroticism-Extraversion-Openness Personality Inventory Ratio) determines where each consumer is positioned, a person can be positioned into more than one dimension. In the

questionnaires consumers‟ are asked to rank themselves in each

dimension and calculate the score for each dimension. In the marketing

context, researchers are interested to find out significant dimensions of

consumer personality. The way „significant‟ is defined in The Big Five as

the dimension in which the participants score the highest. There is no

rule of thumb concerning the number of dimensions that can be taken into account in marketing, however, for the purpose of this study, 2 dimensions are considered the maximum number to be included in the

model in order to classify respondents into specific personality cluster

which best describes their personal characteristics.

Life style models

Life style study of a consumer involves his attitude , Values , Demographics , life stage etc . Following models explains the concept of life style from different

perspectives.

VALS

  • AIO Model

Monitor Mind Base

Geo-Demographic Analysis ( PRIZM)

Global SCAN

Not for circulation : for internal use only

163

VAL 2 Segments

Most resourceful Enjoy the Inner thing, Receptive to new product Technologies Actualizer Status oriented Action oriented
Most resourceful
Enjoy the
Inner thing,
Receptive to new product
Technologies
Actualizer
Status oriented
Action oriented
Attracted to premium
Follow fashion
Less interested in
image & prestige
products
& Fad
Expereincer
Achievers
Fulfilled
Slow to change
, habits, look for bargains
Image conscious ,
limited income
Shop for comfort
, willing try
change.
Maker
Believer
Striver

Need driven

Struggler
Struggler

Not for circulation : for internal use only

Principle oriented

164

Monitor Mind Base

Life style developed based on Value, Life stage & motivation . It combines an individual’s position on a set of core values with life stage & motivation.

The values are : Materialism Material pleasure . (one’s

own pleasure ) Technology Orientation Family Values Conservatism Cynicism versus Optimism Social interaction

Accordingly the segments are :

Up & comers (Aspiring Achievers )

Realists: Constrained & strive to balance their needs.

New Traditionalist : Involved in community & family oriented

. Success comes from good marriage & healthy kids .

Family Centered : Not interested in social issues & self exploration.

Individualist : Driven by technology & success at work . Devoid of family & kids .

Renaissance Masters: Family & community oriented

people.

Maintainers : Use past as a point of reference . Resource

constrained, lead traditional content life .

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166

Prizm : Life style & consumption is largely driven by demographic factors . People with similar cultural background , means, perspective gravitate toward one

another. The model is widely used in U.S for consumer

segmentation. GM, BMW , Hertz etc

Life style clusters are :

1.Furs & station Wagon : Well educated , mobile professional , big spenders, expensive neighborhood.

2.Blue chip Blues: High school education & blue collar occupation , fewer high end incomes & low home values.

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167

Global SCAN : Similar life style in different cultural

surrounding

leads to multiple consumer segments.

1Adapters

2Strivers

3Achievers

4Pressured

5Traditionalist

Achiever Affluent, assertive & opinion makers Strivers Adapters Traditionalist Pressured Materialistic pleasure , success oriented, short

Achiever

Affluent, assertive & opinion makers

 

Strivers

 
   

Adapters

   

Traditionalist

Pressured

Materialistic pleasure , success oriented, short of time

Older crowd . Content with what they have

Old value people conservative , tied to past.

( Downtrodden people with more of problems, economic & Family )

Consumerism & Consumer protection

Responsibilities of Marketer & Consumer protection.

Fair Media communication :

Compliance to Social norms

Avoid Unethical marketing activities.

Exploitation of the consumer by the business community through unfair means & practices have led a movement called consumerism.

Reduce 10 Kg weight in 20 days

Increase you height by 2 inch in 15 days

Change your complexion

in 3 weeks

Remove all marks in 6 weeks.

Protect the consumer from unlawful activities or

communication which are misleading & exploit

them is referred as consumer protection .

Consumer protection Act 1986 : A legal umbrella to protect the interest of the consumer & speedy & cheap justice.

It provides compensation to consumers , penalties

to non compliance of the rules by the marketers .

Under the CPA 1986 , the consumer has :

Right to information Question the marketer on charging of Unfair prices Statutory & mandatory disclosure Protection against hazardous goods. Right to consumer education

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172

The policy making body under consumer protestation act is

central consumer protection council & State consumer protection council. The body is equally responsible for effective implementation

of the Policies.

Central cabinet Minister -Food & Civil supplies is the chairman of the central council & same is the case at the state level.

A consumer complaint can he lodged in :

District forum , ( Jurisdiction up to 20 lacs

)

State forum

(Jurisdiction up to 20-100 lacs )

National forum .( Value more than >100 Lac

)

Any consumer can approach district consumer redressal forum if he has been cheated by the marketer in terms of product delivery & service .

Any claim or the value of product & service up to 20 lacs can be handled by district forum .

A consumer must lodge his complaint within 2 years .

He may appeal to state redressal forum if not satisfied with the decision.

Not an End , but a nimble footed beginning in the corporate ocean , If sharks are unavoidable , Learn to live with it , Craft your own destiny where ,

You may not be important to everyone ,

But you may be special to some one.

Not an End , but a nimble footed beginning in the corporate ocean , If sharks

The Consumer is isn’t stupid , She is your Boss. ……………Ad Guru David Ogilvy

It is no surprise that media must try open the minds of these consumers digging

deep into their thinking & feeling patterns ,

so that they can shape communication to achieve the desired behavioral response.

A McKinsey report predicts a glittering future for Indian

consumers & explosive growth in Indian Consumer spending .

According to the econometric model the middle class will balloon leaving less than 18% in the lowest income category . Today 47% of house hold are in middle class segment , which was jus 20% five years ago. ( BIG

BUSINESS OPPORTUNITY )

The middle class segment will grow to an impossible to ignore segment ( 583Mn ) in next ten years. It will control 51.5 lac Crore spend , 11 times increase from the present.

( BIG BUSINESS OPPORTUNITY )

According to ACNielson global Consumer Confidence & opinions survey 06-07 , Indian consumer leads the rest of the Asia pacific countries , remarkably upbeat about the spending on various segments.

Business opportunities in Retail, Real estate, Telecom, Financial services , Tours & travels, Education, Wellness etc are on the verge of exploding. However the brand managers of the organization are unable to see the skyrocketing sales & serpentine queue of consumers in the store .

WHY ???????????

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179

Classification of cities & Town

4 Metros , Bangalore Hydrabad , Pune 1.Major cities > 100 bn total income Tier –I
4 Metros , Bangalore
Hydrabad , Pune
1.Major cities
> 100 bn total income
Tier –I
Ahemdabad
8cites
Tier –II
26 cities
2.Main stream
Cities
Tier -III
3.Climbers
33 cities
Tier -IV
4.Small
5093 towns
Towns

Consumer behavior study help to probe the

deep recesses of the consumer mind where the

needs are still not articulated. It helps to get deeper in to the MIND & HEART of THE

CONSUMER get more insight & angles which

helps the organization to understand how they THINK & FEEL about the brand /product /

service rendered. This creates a desire to buy &

involve with the brand .

It helps to build a life time customer value for

the organization, which is an intangible asset .

Customer Value & Purchase Involvement

Value drives satisfaction

Satisfaction is a necessary condition for customer loyalty, but not a

sufficient to create loyal customers, customer excellence & delight.

Value = Benefits ( Functional Benefit + Emotional Benefit)

Cost

Customer Value & Purchase Involvement Value drives satisfaction Satisfaction is a necessary condition for customer loyalty,

( Monetary +Time+ Energy+ Psychic Cost)

Customer perceived values in a product or services are :

Functional Value

Emotional Value

Social value Situational / Conditional value Epistemic Value

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182

Customer Value & Purchase Involvement Value drives satisfaction

Satisfaction is a necessary condition for customer loyalty, but not a sufficient to create loyal customers, customer excellence & delight.

Delivering value to the customers is a key to achieving organizational goals by being more effective than its competitors in creating , delivering & communicating customer value to the identified set of consumers in the market .

Value =

What is value?

Benefits ( Functional Benefit + Emotional Benefit)

Cost

Customer Value & Purchase Involvement Value drives satisfaction Satisfaction is a necessary condition for customer loyalty,

( Monetary +Time+ Energy+ Psychic Cost)

What is customer delivered value ( CDV) ?

It is a difference between Total Customer Value( TCV) & Customer‟s Total

Cost ( CTC)

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183

Determinants of CDV

Determinants of CDV CDV CTC TCV Monitory Time Energy Psychic cost Cost Cost cost Product Service
Determinants of CDV CDV CTC TCV Monitory Time Energy Psychic cost Cost Cost cost Product Service
CDV
CDV
CTC
CTC
TCV
TCV

Monitory

 

Time

 

Energy

 

Psychic

cost

Cost

Cost

cost

 

Product

   

Service

 

Emotional

 

Image

value

Value

Value

 

Value

Determinants of CDV CDV CTC TCV Monitory Time Energy Psychic cost Cost Cost cost Product Service

CDV builds customer delight . It is a difference between the

perceived performance ( Out come )

& expectation.

If the performance falls short of expectation, it leads to dissatisfaction. On the other hand if it matches the expectation it leads to satisfaction.

When it exceeds expectation, it becomes Customer delight .

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184

Customer Loyalty Program

CEM CTM
CEM
CTM

(Customer touch point Management )

Enhancing customer Touch point during :

Purchase touch point Post purchase touch point

To increase the mind share of the customer

with the brand.

Influencing

buying decision in a consumer

Feedback

Cognitive

factor

Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER

Individual

factor

Personal

characteristics

 

Decision

Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER
Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER

making

CONSUMER

Environmental

factor

Response

Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER
Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER
Influencing buying decision in a consumer Feedback Cognitive factor Individual factor Personal characteristics Decision making CONSUMER

Culture

Social class

Influence group

Situational

variable

Buyer‟s characteristics are influenced by

Cognitive

Personal

cultural

social

Influence

Situational

factors

factors

factor

factor

groups

variables

       

Perception

Demographics

Values

Social

Reference

point of

&

groups

purchase

Attitudes

Life style

Belief

class & Structure

Family

Market communication

Motives

Personality

Cross

Societal

Opinion leaders

Display

& Need

traits

cultural

belonging

Innovation

Store

Influences

& trend

Patronage

Self concept

Sub cultural

setters

Price

 

influences

All above factors influence a consumer‟s buying decision.

Buying Decision process

Input Stimuli
Input
Stimuli
Buying Decision process Input Stimuli Motivation Attitudes, Personality, Perception Need Information recognition search Evaluation Of alternatives

Motivation

Attitudes, Personality, Perception

Need Information recognition search
Need
Information
recognition
search

Evaluation Of alternatives

Purchase

Decision

Post purchase Behvaiour
Post purchase Behvaiour
 

Post purchase Behvaiour

 
Post purchase Behvaiour

Not for circulation : for internal use only

Output

Behaviour

188

Consumer‟s behavior is studied from the point of view of :

1.Consumer as an individual :

Consumer behavior study as in individual involves

motivational drive ,its measurement , needs & wants &

types of need . Self concept, attitude , perception, consumer imagery

2Consumer in his social & cultural setting :

It involves cultural influence, sub culture , cross culture , ( nationality, religion , etc ) psychographic [ life style ] ,

Social group, reference group , geo demographic clustering

etc.

Values : Values are formed at much early in age ,at home or

school & are the deep rooted . While all values have its own negatives & positives, it can rarely be changed .

Ritual & heroes fall between the deepest & superficial

manifestation . Heroes are people ,alive or dead or imaginary

serving as a role models of the behavior.

Rituals are ways of socially greeting, social & religious

ceremonies . A traditional marriage ceremony, being followed with out questioning it.

Culture strongly influence the decision making behavior of a

consumer.

Psychographic profile

It is a combinations of Social group, sub group,

attitude, perception, opinion , interests life style .

Value & life style ( VAL Model ) & Activity , Interest

& opinion ( AIO) inventory helps to study the psychographic profile of a consumer .

VAL model classifies the consumer in the following categories on the basis of Value & life style .

1Actualizer , 2 fulfilled, 3Believer, 4 Achiever ,

5Striver, 6Experiencer, 7Maker 8 Struggler

Personality classification done on the basis of Psychographic

segmentation of Indian Women & Youth done by a research organization.

CLASS

Behavior

Miss Sophisticate : Tries out new & trendy products .Upward mobile group.

Traditionalist

: Stick to the brands which gives comfort.

Troubled home baby

: Unwilling to spend extra for comfort & pleasure . Compromising nature . Evaluate Price performance

Ms up to date

: Do not compromise on life style . Willing ness to change when required.

Ms nonsense

Conservative

: Believes cheapest products gives believe in branded products.

hive material value. Do not

: Learn to manage with what is in in deposition. Spending money

is a bad habit

Gregarious hedonist

: Spends for social cause , strong religious belief ,

custom .

Youth classification :

Behavior

Cultural misfit : Carried by strong belief . Unwilling to change

Style Bhai

: Believes in experimenting new things. Appearance conscious. Shows high degree of

change.

Middle class Manju : Typical family oriented & Price conscious, spending on entertainment , life style products is bad habit.

Main Bhi NRI

Rich Brat

Nerdy Nandu

: Adapts to new culture fast . Can be easily

influenced. Life style conscious. Trend setters : Willing to spend for luxury , comfort ,even if

it has short lived usage .

: Time constrained youth . Always behind trend & clue less. Wiling to do any thing to

climb the ladder of success.

VAL( Value & Life style Classification ) System . ( developed by

Arnold Mitchell)

The system was developed to explain the dynamics of societal change in the buying behaviour of a consumer . Accordingly consumer responses were collected for 35

attitudinal & 4 demographic questions.

On the basis of these responses consumers

were classified in eight distinctive sub groups.

Each group signifies a behaviour

response pattern ( life style ) & inner psychological needs ( Value )

It acts as a dynamic frame work of values & life styles which helps to explain why

people have a explicit behaviour

Eight VAL segments are :

Actulizer

Experiencer

Fulfilled

Maker

Believer

Struggler

Achiever

Striver

VALS type model used by Unilever .

Food benefit frame work created by comparing key

benefits in different categories are :

Confidence , Time saving , Health , pleasure , Mental management , Caring ( family/world ) Fun, socializing

Not for circulation : for internal use only 198

Indicator