ATTITUDE

Attitude is a psychological variable that is known to affect the purchase decision

process of consumers

 An attitude can generally contain a positive or negative evaluation of people,

objects, event, activities, ideas, or anything in the environment.
 Carl Jung ‘s definition of attitude is a “readiness of the psyche to act or react
in a certain way”.
 Attitudes can be difficult to measure because attitudes are ultimately a
hypothetical construct that cannot be observed directly.
 Attitudes can be measured by the use of physiological cues like facial
expressions, vocal changes, and other body rate measures.

Attitude is a psychological variable that is known to affect the purchase decision

process of consumers. Other variables are perception, learning, personality, and
lifestyle.

An attitude generally contains a positive or negative evaluation of people, objects,

event, activities, ideas, or anything else in the environment. However, people can
also be conflicted or ambivalent toward an object, meaning that they might at
different times express both positive and negative attitudes toward the same object.

Attitude is one of Carl Jung’s 57 definitions in Chapter XI of Psychological Types.

Jung’s definition of attitude is a “readiness of the psyche to act or react in a
certain way.”
Attitudes can be difficult to measure because attitudes are a hypothetical construct
that cannot be observed directly. Attempted measures may include the use of
physiological cues like facial expressions, vocal changes, and other body rate
measures. For instance, fear is associated with raised eyebrows, increased heart
rate and increase body tension.

Attitudes can be changed through persuasion in response to communication.

Experimental research into the factors that can affect the persuasiveness of a
message include:

1. Target Characteristics: These are characteristics that refer to the person who
receives and processes a message. One such trait is intelligence – more
 intelligent people seem to be less easily persuaded by one-sided messages.
Another variable that has been studied in this category is self-esteem.
2. Source Characteristics: The major source characteristics are expertise,
trustworthiness, and interpersonal attraction or attractiveness. The
credibility of a perceived message has been found to be a key variable here; if
one reads a report about health and believes it came from a professional
medical journal, one may be more easily persuaded than if one believes it is
from a popular newspaper.
3. Message Characteristics: The nature of the message plays a role in
persuasion. Sometimes presenting both sides of a story is useful to help
change attitudes. When people are not motivated to process the message,
simply the number of arguments presented in a persuasive message will
influence attitude change, such that a greater number of arguments will
produce greater attitude change.
4. Cognitive Routes: A message can appeal to an individual’s cognitive
evaluation to help change an attitude. In the central route to persuasion, the
individual is presented with the data and motivated to evaluate the data and
arrive at an attitude-changing conclusion. In the peripheral route to attitude
change, the individual is encouraged to look not at the content but at the
source. This is commonly seen in modern advertisements that feature
celebrities
PERSONALITY

To understand a buyer needs and convert them into customers is the main purpose
of the consumer behavior study. To understand the buyer habits and his priorities,
it is required to understand and know the personality of the buyer.
Personality signifies the inner psychological characteristics that reflect how a
person reacts to his environment. Personality shows the individual choices for
various products and brands. It helps the marketers in deciding when and how to
promote the product. Personality can be categorized on the basis of individual
traits, likes, dislikes etc.
Though personality is static, it can change due to major events such as death, birth
or marriage and can also change gradually with time. By connecting with the
personality characteristics of an individual, a marketer can conveniently formulate
marketing strategies.
We will discuss in this chapter the various theories of personality.

Trait Theory

Traits are the features of an individual or tendency of an individual in a particular

manner. Traits help in defining the behavior of consumers. According to the Trait
theorists, an individual’s personality make-up stems out of the traits that he
possesses, and the identification of traits is important.

Following are the few of the most common traits −

 Outgoing
 Sad
 Stable
 Serious
 Happy go lucky
 Relaxed
 Self assured
 Practical
 Imaginative

Trait theory is representative of multi-personality theories. Trait theory is based on

certain assumptions, such as traits which are certainly stable in nature and a
limited number of traits are common to most of the people.

According to the Trait theorists, an individual’s personality make-up stems out of

the traits that he possesses, and the identification of traits is important. The trait
theories can be of two broad categories, viz., Simple trait theories and general
trait theories.
Simple Trait Theories

In simple trait theories, a limited number of traits are identified, and people are
categorized and classified on the basis of these traits.
General Trait Theories

In general trait theories, a large variety of traits are identified.

The Psychoanalytic Theory of Freud

Sigmund Freud, the father of psychology, became famous with his psychoanalytic
theory of personality. In fact, the theory is regarded as the cornerstone of modern
psychology. Sigmund based his theory on certain assumptions which is as follows
−

Unconscious needs or drives lie at the heart of human motivation and personality.

The socialization process that takes place within people in a social set up has a
huge impact on individual behavior. Freud explained much of how the psyche or
the mind operates, and proposed that, human psyche is composed of parts within
our awareness and beyond our awareness.

He said that all behavior within an individual cannot be explained, much lies in the
subconscious.

 Id − According to Freud’s psychoanalytic theory of personality, the id

operates based on the pleasure principle, which stresses on immediate
fulfillment of needs. The id is the personality component made up of
unconscious psychic energy which satisfies basic urges, needs, and desires.
 Ego − Ego is that state of awareness which thinks of you as separate from
the other. It always thinks of the glories of the past and hopes of the future
and focuses on guiltiness. It always thinks of what was and what could be.
 Super Ego − The superego provides guidelines for making judgments. It is
the aspect of personality that holds all our moral standards and ideals that
we acquire from both parents and society.

Neo-Freudian Theory

There were a group of psychologists who believed that social interaction and
resultant relationships formed the basis for the growth and development of
personality. Here, they disagreed with their contemporary, Freud, who believed
that personality was −

 Biological and rooted in genetics, and

 Was groomed as a result of early childhood experiences. This group of
researchers who laid emphasis on the process of socialization came to be
known as the Neo. To form a personality, social relationships are very
important.

Based on this, consumers are classified into three personality types −

  Complaint Personalities − They prefer love and affection and so they move
towards them and so they prefer known brands.
 Aggressive Personalities − They tend to move against others and they show
off their need for power, success etc which is quite manipulative.
 Detached Personalities − They are not much aware of brands and are more
self reliant and independent.

Marketers also tend to use Neo-Freudian theories while segmenting markets and
positioning their products.

Self Concept

Self concept is defined as the way, in which we think, our preferences, our beliefs,
our attitudes, our opinions arranged in a systematic manner and also how we
should behave and react in various roles of life. Self concept is a complex subject
as we know the understanding of someone’s psychology, traits, abilities sometimes
are really difficult. Consumers buy and use products and services and patronize
retailers whose personalities or images relate in some way or other to their own
self-images

Traditionally, individuals are considered to be having a single self-image which

they normally exhibit. Such type of consumers are interested in those products and
services which match or satisfy these single selves. However, as the world became
more and more complex, it has become more appropriate to think of consumers as
having multiple selves.

What is Self-Concept?

The below are some of the major aspects of Self-concept

Self-Concept is Organized

We all have various views about ourselves. We all may think we are kind, calm,
patient, selfish, rude and what not. It doesn’t matter what perception you have
about yourself, but the one perception that facilitates all these insights is organized
self concept. When a person believes in something that matches his self concept he
sticks to his view and does not agree to change the same and even if does, it takes a
lot of time.
Self Concept is Learned

It is believed that self concept is learned and no person is born with a self concept.
It develops as and when we grow old. Our self concept is built when we meet
people socially and interact with them. We are the ones who shape or alter our self
concept and its quite natural that we may have a self concept different for
ourselves as compared to what people think about us.

For example − If an individual thinks, he is very generous and helpful, it may not
necessarily be the case with others. Others may see him as a selfish person.
Self Concept is Dynamic

Our self concept in life is not constant and it may change with instances that take
place in our lives. When we face different situations and new challenges in life, our
insight towards things may change. We see and behave according to the things and
situations.

Thus, it is observed that self concept is a continuous development where we let go

things that don’t match our self concept and hold on those things that we think are
helpful in building our favorable perception.

Self concept is the composite of ideas, feelings, emotions and attitudes that a
person has about their identity and capabilities.

CULTURAL, SOCIAL AND ECONOMIC FACTORS AFFECTING

CONSUMER BEHAVIOR

1. Consumer Behaviour – Cultural factors

Culture plays a very vital role in the determining consumer behaviour it is sub
divided in

 Culture

Culture is a very complex belief of human behaviour it includes the human society,
the roles that the society plays, the behaviour of the society, its values customs and
traditions. Culture needs to be examined as it is a very important factor that
influences consumer behaviour.

 Sub-Culture
Sub-culture is the group of people who share the same values, customs and
traditions. You can define them as the nation, the religion, racial groups and also
groups of people sharing the same geographic location

 Social Class

Society possesses social class; in fact every society possesses one. It is important
to know what social class is being targeted as normally the buying behaviour of a
social class is quite similar. Remember not just the income but even other factors
describe social class of a group of consumers.

2. Consumer Behaviour – Social Factors

Social factors are also subdivided into the following

 Reference groups

Under social factors reference groups have a great potential of influencing

consumer behaviour. Of course its impact varies across products and brands. This
group often includes an opinion leader.

 Family

The behaviour of a consumer is not only influenced by their motivations and

personalities but also their families and family members who can two or more
people living together either because of blood relationship or marriage.

 Role and status

People who belong to different organizations, groups or club members, families

play roles and have a status to maintain. These roles and status that they have to
maintain also influences consumer behaviour as they decide to spend accordingly.

3.PSYCHOLOGICAL FACTORS

psychological factors affect consumer behaviour very strongly. Let’s look at them
in detail.

 Motivation
Motivation is activating the internal needs and requirements of the consumer. It
can also be described as goals and needs of the consumers. Motivation arouses
and directs the consumers towards certain goals. These needs can be
psychological needs, needs of security, social needs, esteem needs and also self
actualizing needs.

 Perception

Perception is sensing the world and the situations around and then taking a
decision accordingly. Every individual look as the world and the situations
differently. The judging ability and capacity of every individual is different and
hence the look at the world differently. This is what separates the decision taking
abilities.

 Learning and experience

Learning is the research of products and services before the consumer takes the
decision of buying a product. Learning and self educating these days is done
online and also in groups. Experience is taking a lesson from the past experiences
of a product and service. Learning and experience both again play an important
role in influencing the consumer’s behaviour as it influences their purchase
decision.

 Attitude and beliefs

Attitude is a consumer’s favorable and unfavorable emotional condition or

emotional feeling, also its tendency of reaction to certain actions and behaviours.
Beliefs of people that are the belief that people assume the products to be as make
the specifications of the products. Hence attitude and beliefs are also important
and need to be taken into consideration while studying human behaviour.

4. ECONOMIC FACTORS
Consumer behaviour is influenced largely by economic factors. Economic factors
that influence consumer behaviour are

a) Personal Income,

b) Family income,

c) Income expectations,
d) Savings,

e) Liquid assets of the Consumer,

f) Consumer credit,

g) Other economic factors.

a) Personal Income:
The personal income of a person is determinant of his buying behaviour. The gross
personal income of a person consists of disposable income and discretionary
income. The disposable personal income refers to the actual income (i.e. money
balance) remaining at the disposal of a person after deducting taxes and
compulsorily deductible items from the gross income. An increase in the
disposable income leads to an increase in the expenditure on various items. A fall
in the disposable income, on the other hand, leads to a fall in the expenditure on
various items.

The discretionary personal income refers to the balance remaining after meeting
basic necessaries of life. This income is available for the purchase of shopping
goods, durable goods and luxuries. An increase in the discretionary income leads
to an increase in the expenditure on shopping goods, luxuries etc. which improves
the standard of living of a person.

b) Family income:
Family income refers to the aggregate income of all the members of a family.

Family income influences the buying behaviour of the family. The surplus family
income, remaining after the expenditure on the basic needs of the family, is made
available for buying shopping goods, durables and luxuries.

c) Income Expectations:
Income expectations are one of the important determinants of the buying behaviour
of an individual. If he expects any increase in his income, he is tempted to spend
more on shopping goods, durable goods and luxuries. On the other hand, if he
expects any fall in his future income, he will curtail his expenditure on comforts
and luxuries and restrict his expenditure to bare necessities.
d) Savings:
Savings also influence the buying behaviour of an individual. A change in the
amount of savings leads to a change in the expenditure of an individual. If a
person decides to save more out of his present income, he will spend less on
comforts and luxuries.

e) Liquid assets:
Liquid assets refer to those assets, which can be converted into cash quickly
without any loss. Liquid assets include cash in hand, bank balance, marketable
securities etc If an individual has more liquid assets, he goes in for buying
comforts and luxuries. On the other hand, if he has less liquid assets, he cannot
spend more on buying comforts and luxuries.

f) Consumer credit:
Consumer credit refers to the credit facility available to the consumers desirous of
purchasing durable comforts and luxuries. It is made available by the sellers,
either directly or indirect у through banks and other financial institutions. Hire
purchase, installment purchase, direct bank loans etc are the ways by which credit
is made available to the consumers.

Consumer credit influences consumer behaviour. If more consumer credit is

available on liberal terms, expenditure on comforts and luxuries increases, as it
induces consumers to purchase these goods, and raise their living standard.

g) Other economic factor:

Other economic factors like business cycles, inflation, etc. also influence the
consumer behaviour.

5. PERSONAL FACTOR:
Personal factors also influence buyer behaviour. The important personal factors,
which influence buyer behaviour, are a) Age, b) Occupation, c) Income and d) Life
Style

a) Age:
Age of a person is one of the important personal factors influencing buyer
behaviour. People buy different products at their different stages of cycle. Their
taste, preference, etc also change with change in life cycle.
b) Occupation:
Occupation or profession of a person influences his buying behaviour. The life
styles and buying considerations and decisions differ widely according to the
nature of the occupation. For instance, the buying of a doctor can be easily
differentiated from that of a lawyer, teacher, clerk businessman, landlord, etc. So,
the marketing managers have to design different marketing strategies suit the
buying motives of different occupational groups.

c) Income:
Income level of people is another factor which can exert influence in shaping the
consumption pattern. Income is an important source of purchasing power. So,
buying pattern of people differs with different levels of income.

d) Life Style:
Life style to a person’s pattern or way of living as expressed in his activity,
interests and opinions that portrays the “whole person” interacting with the
environment. Marketing managers have to design different marketing strategies to
suit the life styles of the consumers.