Self Learning Material

Consumer Behaviour
(BBA-403)

Course: Bachelors in Business Administration

Semester-IV

Distance Education Programme

I.K. Gujral Punjab Technical University
Jalandhar
 Syllabus
Max. Marks: 100
External Assessment: 60
Internal Assessment: 40

Objectives: This course aims at enabling students to understand the various aspects of
consumer behavior, the external and internal factors that influence consumer behaviour and
to apply this understanding to the development of marketing strategy.

Unit I
Consumer behaviour: nature, scope & application
Consumer buying behaviour: consumer decision making process (five step model), factors
affecting buying behaviour, purchase behaviour, buyer’s role.

Unit II
Consumer as an individual:
Consumer motivation: needs & goals, positive & negative motivation, types & systems of
needs hierarchy & trio of needs
Introduction to Personality: Theories, Product Personality, Perception:Concept and Elements
of
Perception and Attitude with reference to consumer behavior.

Unit III
Consumer in social & cultural setting:
Reference groups: concepts, factors affecting reference groups, Family: Functions of family,
Family decision making, Family Life Cycle social class & its measurement
Culture & sub culture: definition & influence

Unit IV
Consumer Decision Making: Introduction to opinion leadership Process Diffusion of
innovations:
Diffusion Process, Adoption Process, Introduction to Consumer Decision Making: levels,
decision making process, Various views of consumer decision making, Models of consumer
decision- making,

Suggested Readings:
1. Schiffman & Kanuk: Consumer Behaviour, Pearson Education
2. Engel, Blackwell, & Miriard: Consumer Behaviour, Dryden Press
3. Majumdar,R, Consumer Behaviour: Insights from the Indian Market, PHI Learning Pvt.
Ltd., New Delhi
4. Loudon, Bitta, Consumer Behaviour, Tata McGraw Hill, New Delhi.
 Table of Contents
Lesson Title Written by Reviewed by Page No.
No.
Dr. Harpreet Singh Chahal, Dr. Purva Kansal, Assistant 1
Introduction to Consumer Professor,
Assistant Prof. Guru Nanak Dev
1 Behaviour UBS, Punjab University,
University, Regional Campus,
Gurdaspur Chandigarh

Dr. Kulbhushan Chandel, Dr. B. S. Hundal, Professor, 27

Consumer Buying Associate Professor, University Business School,
2 Guru Nanak Dev University,
Behaviour Department Of Commerce, HP
University Shimla Amritsar

Dr. Harpreet Singh Chahal, Dr. Purva Kansal, Assistant 35

Consumer Motivation Assistant Prof. Guru Nanak Dev Professor, UBS, Punjab
3
University, Regional Campus, University, Chandigarh
Gurdaspur
Dr. Harpreet Singh Chahal, Dr. Purva Kansal, Assistant 48
Personality Assistant Prof. Guru Nanak Dev Professor, UBS, Punjab
4
University, Regional Campus, University, Chandigarh
Gurdaspur
Dr. Purva Kansal, Assistant 63
Reference Groups Mr. Parvinder Singh, GNDU
5 Professor, UBS, Punjab
Regional Centre, Gurdaspur
University, Chandigarh
Dr. Purva Kansal, Assistant 76
Family Mr. Parvinder Singh, GNDU
6 Professor, UBS, Punjab
Regional Centre, Gurdaspur
University, Chandigarh
Dr. Purva Kansal, Assistant 88
Mr. Parvinder Singh, GNDU
7 Culture Professor, UBS, Punjab
Regional Centre, Gurdaspur
University, Chandigarh
Personal Influence and Dr. Purva Kansal, Assistant 110
Mr. Parvinder Singh, GNDU Professor, UBS, Punjab
8 Opinion Leadership
Regional Centre, Gurdaspur University, Chandigarh
Dr. Purva Kansal, Assistant 128
Mr. Parvinder Singh, GNDU Professor, UBS, Punjab
9 Diffusion of Innovations
Regional Centre, Gurdaspur University, Chandigarh
Dr. Purva Kansal, Assistant 147
Introduction to Consumer Mr. Parvinder Singh, GNDU Professor, UBS, Punjab
10
Decision Making Regional Centre, Gurdaspur University, Chandigarh

© IK Gujral Punjab Technical University Jalandhar

All rights reserved with IK Gujral Punjab Technical University Jalandhar
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LESSON: 1
Consumer Behaviour
Structure:
1.0. Objectives
1.1. Introduction
1.2. Definitions
1.3. Development of the field of consumer behaviour
1.4. Reasons for studying consumer behaviour
1.5. Key‟s in understanding consumer behaviour
1.6. Factors affecting consumer behaviour
1.7. Scope
1.8. Importance
1.9. Interdisciplinary nature
1.10. Strategic applications
1.11. Summary
1.12. References
1.13. Answers to Check your progress
1.14. Suggested readings
1.15. Terminal and model questions
1.16. Glossary
1.0 Objectives:
After finishing this chapter, you should be able to:
• Define consumer behaviour
• List reasons for studying consumer behaviour
• Explain Marketing strategy and consumer behaviour

1.1 Introduction:
Consumer behaviour deals with the study involving various practices in which individuals or
groups of people choose buy and utilize products, product related services, different ideas and
experiences to fulfil their desires and important needs. Consumers could be in any form,
ranging from a small child pleading with her mother for toys to a manager in a large company
deciding on an extremely expensive furniture replacement. There is a rising concern in
consumer behaviour from the marketing point of view but it is also important for social
sciences in general. Whether you are deciding about which laptop to buy, which show to
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watch, listening to your favourite FM station, or using the Internet, you come along certain
topics of significance related to consumer behaviour study. Consumer Behaviour can be
defined as interaction of different forces that come during a process of consumption, in a
consumers‘ self and his/her surrounding environment. This interaction involves relation
between three important elements viz. cognition, affect and behaviour. It starts from pre-
purchase activity and ends to post-purchase experience. It involves different stages of
assessment, attaining, using and disposing of goods and related services.

In early days of growth of this field, it was referred as buyer‘s behaviour, which at the time of
purchase reflected and stressed on the interrelation between producer and consumer.
Marketers currently get familiar that behaviour of consumer is an ongoing continuous
process, not just what occurred at the moment a consumer purchases some goods or services.
As a consumer we are all different and this differentiation is reflected in the consumption
pattern and process of purchase. In order to understand consumer behaviour, it is essential to
have a complete picture of all psychological, social and economic aspects. This knowledge
enables marketers to draft appropriate strategies to achieve the targeted benefits for
organisations and customers as well.

1.2 Definitions:
According to American Marketing Association, consumer behaviour is defined as the
dynamic interaction of effect and cognition, behaviour and the environment by which human
beings conduct the exchange aspects of their lives.
Engel, Blackwell, Miniard defined it as actions which are directly involved in obtaining,
consuming and disposing of products and services including the decision processes that
precede and follow these actions.‘‘
―Consumer behaviour refers to the actions and decision processes of people who purchase
goods and services for personal consumption.‖
-James F Engel, Paul W Miniard and Roger D Blackwell
―The behaviour that consumers display in searching for, purchasing, using,evaluating and
disposing of, if products and services that they expect will satisfy their needs.‖
-Leon G Schiffman and Leslie Lazar Kanuk.
By categorizing and understanding various aspects that influence their customers, brands
have the opportunity to build up a strategy, that can be a unique method of marketing
message and promoting campaigns more effectively and those in line with the needs of their
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consumers at target, that could meet better with the needs of its customers and thereby
increases sale. Consumer has become the king of market and ignoring the study of his needs,
behaviour and motives will lead to wrong decisions that could result in an organisation‘s fall.
modern marketing considers the consumer as the beginning of all the activities, so an
organisation need to plan , organise, direct and control its activities and resources in order to
satisfy the needs and wants of a consumer. When buyers and sellers were limited in number,
they could arrive at a reasonable understanding of consumers through daily experience of
buying and selling and through direct interaction with them. Growth of firms and markets has
created a distance between buyers and sellers. Thus, there is deficiency of direct contact with
the customers. Hence managers have to go for consumer research. To be competitive in the
market place, marketers need to recognise when and how they need to intervene in the
consumer buying process. A crucial element involved in marketing is to discover or
recognize why a customer makes a purchase? Lacking this information of understanding,
trading would find it tough to respond to the customer‘s need for goods and services. It is a
great challenge for manager dealing with marketing strategies to recognize and understand
how consumers may respond to the diverse elements of the marketing mix offered to them. If
administration can realize these important responses, then it is potentially a significant source
of competitive advantage. A firm need to analyse buying behaviour for finding the impact of
firm‘s strategies on buyer‘s behaviour and for creating a marketing mix that can provide
maximum utility to final consumer. Consumer behaviour study offers us with different basis
and underlying reasons why customers act different from others in case of buying products
and its related services. ―Consumer‖ term widely encompasses not only the real buyer or
consumer, but all its users i.e. customers. A customer can be a household or an organisational
body who plays a pivotal role in the finishing of a deal with a marketer or an individual.

1.3 Development of consumer behaviour field:

Many reasons are accountable for the development of consumer behaviour as an
important/fundamental and distinct division in marketing discipline. Customers did not
constantly act as proposed by popular economic theory. The size of the buyer market in
various developed and fast developing nations of the world was wide-ranging. A vast
population of consumers were expending huge money on goods and its services. Other than
this, buyers likings were varying and becoming highly differentiated. For example in case of
industrialised markets, where the requirement of goods and services is generally more
similar, consumer‘s preferences were becoming different and they too were showing less
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normal purchase behaviour. Marketing researchers generally get involved in learning and
revising the buying nature of customers though they have many similarities, but still
consumers were found not alike. There are many people who used products which are
currently in trend while many of the consumers did not respond well towards using such
types of products. They generally show an inclination for highly diverse products which they
found to satisfy their needs and imitated their personality and lifestyles. These findings
conclude to the advancement of concept of market segmentation. This segmentation required
division of the total heterogeneous but potential market into quite smaller homogenous
segments or groups for which they could easily design a definite offering. In market
segmentation, they employ various positioning techniques and raise promotional programmes
to distinguish the representation of their goods, so that they found to be a better way to
fulfilling the specific requirements of certain groups or segments of consumers. Many other
important factors which contribute a lot towards the consumer behaviour development as a
separate discipline of marketing includes environmental concerns, shorter product life cycles,
growth of services marketing, consumer protection, opening up of markets internationally
and the growth of various sophisticated procedures of statistical analysis.

1.4 Reasons behind studying Consumer behaviour:

There are many reasons for consumer behaviour learning but most important is its important
part it plays in day to day life. We devote our maximum time in market places for exploring
new products. We generally discuss with friends regarding products/services, also get lot of
information from internet and media sources. This effects our every daily lives. Consumer
selections are generally influenced by their behaviour. Thus, consumer behaviour has become
a practical discipline which leads to the micro and societal perspective.

Micro Perspective: deals with understanding the behaviour of a customer for the intention of
helping an organizational unit to accomplish its goals and all the managers are always
devoted to be aware of the consumer‘s behaviour.

Societal Perspective: deals on the macro level in which consumers together influence social
and economic conditions of a society. In this perspective, consumers powerfully impact the
product related decisions i.e. what will be the product, various resources to be used and its
effects on standard of living.
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Management is found to be the newest of all the sciences and eldest of arts in case of
consumer behaviour. Various academicians and researchers started concentrated on this
discipline at a much later stage. Marketing concept has developed during the 1950s, and soon
the requirement and importance of studying the consumer‘s behaviour was documented. The
main aim of Marketing is to find out the needs of consumer‘s and their fulfilment and
satisfaction. As everything revolves around the customer‘s and its needs, so it becomes
utmost important to study and understand the behaviour of consumer which starts with
buying of goods and services. Products or goods can be purchased in groups or separately.
Goods and services can be purchased under anxiety also (to satisfy an instant need), for
luxury and comfort, in bulk or little amounts. Exchange is very essential for all this to occur,.
This swapping is generally between the buyer and the seller and in some cases, It can also
occur between different consumers.
To recognise the likings and disliking‘s of the consumer, wide research has been carried out
by various academicians. They try to uncover out answers to many certain questions as given
below:
• What is in the mind of a consumer about the company‘s offerings and about its
competitors?
• What better qualities the products need according to them?
• How consumers use the company‘s offerings?
• The behaviour of consumer towards the company‘s offerings and its marketing?
• The responsibility that a customer have in his family?
Consumer behaviour is found to be a dynamically complex, multi-dimensional process, and
all marketing based decisions are supported by assumptions regarding consumer behaviour.
Marketing strategy is explained as a game plan on which the organisational unit must stick to,
in order to beat the competitor or the strategies in order to attain their desired objective. In
devising any marketing strategy to sell the goods successfully, analysis of cost-benefit must
be carried out.
1.5 Key‟s in understanding Consumer behaviour:
In order to understand the behaviour of a consumer behaviour better, it is essential to first
understand some concepts, referred to as key concepts.
They are:
1) Consumer behaviour is grounded on motives and incentives: consumer behaviour
is the result of various motives and incentives. Motives are internal to a consumer
and that impulse the consumer to behave. On the other hand, incentives are external
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influences and they represent the rewards that a consumer expects from acquiring the
products.
Types of motives:
a) Functional motive: itisa motive to complete certain functions.
b) Expressive motive: a purchasing motive to show love and affection by
purchasing a good or a service. For example: purchasing a gift for your best
friend.
c) Complex motive: a complex buying motive aims at accomplishing more than
one objective as a result of the purchase.
d) Defined motive: a motive that is very clear and known to the consumers and
others in surroundings is called defined motive. This is the simplest and easiest
purchasing motive.

2) Consumer behaviour includes some activities:

Consumer behaviour consists of various activities that ultimately leads to the
purchase decisions that a consumer makes. These activities include:
a) Thinking of a good or a service offering.
b) Examining the advertisement seen by a consumer media regarding good or
service
c) Discussing the matter with family members or friends
d) Making the decision regarding purchase
e) Visiting the stores offering the goods or services for sale
f) Evaluating and comparing product properties with its competitors
g) Finalizing purchase of a good or service

3) Consumer behaviour goes through successive steps: consumer behaviour

decisions goes through three stages:
 Pre purchase decision
 Purchase decision
 Post purchase decision
Investigating these stages, in first stage, consumer thinks about the available goods
and services by comparing their properties, and making evaluations by consulting
with his family and friends. Second stage deals with actual purchase. In the third
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stage- after purchase evaluations are made in order to find whether their purchase
decision was right or not.
4) Consumer behaviour varies according to time and structure: timerefers when a
purchase takes place and the time it takes to complete a purchase. These dimensions
are affected by various factors, which in turn, differ across time. Structure, refers to
various steps or stages in purchasing and the set of activities at each stage. This
implies that time and structure are closely related.
5) Consumer behaviour includes different roles:
Behaviour of a consumer differs from one place to another, and this mainly depends
on the roles that consumer plays, which ultimately associate very closely to his
behaviour. Consumer behaviour can be represented by several roles which starts with
generation of a purchase idea, then purchase decision, and it ends with using the
product.
6) Consumer behaviour is influenced with external factors:
as we all know, a consumer is present in an environment, he certainly interacts with
it. There are various external factors that affect consumer‘s behaviour. These factors
are:
a) Culture:
culture is beliefs and values that exists in the society. The consumer accepts
them and they in turn effects purchase behaviour.
b) Reference groups:
These groups includes family, friends, clubs, associations to which a consumer
fits. They frequently affects consumer‘s behaviour.
c) Social class:
A society is distributed into classes according to the living standards of its
members. Social class its characteristics and customs affects the living standards
of consumer behaviour
d) Family:
Family is expected to have a strongest influence on consumer‘s behaviour. This
is due to the early upbringing and socializing they practice with the family. The
family‘s influence is significant, especially in a country like India, where family
ties are very strong and traditional concept is still present.
e) Marketing methods:
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Marketing methods include advertisements, personal selling, discounts, gifts and

various other ways of persuading consumers to buy goods and service offering by
an organisation. All these factors are considered significantly important to
influence consumer‘s behaviour.

Check your progress: 1.

a. Consumer behaviour is the study of the processes involved when

_____________________________ or _________________________________ select,
purchase and use products, services, ideas or experiences to content their
__________________________ and ________________________________.

b. In early days of growth of this field, it was often referred to as

________________________, reflecting an emphasis on the
_____________________between producer and consumer at the time of
_____________________.

c. External factors influencing consumer behaviour include _________________

_______________, _____________, _________________, _______________.

1.6 Factors influencing consumer behaviour:

There are various factors that influence consumers to grow likings for various brands and
products. Some of these factors are not directly controllable by marketers, but to understand
their impact is very essential for developing marketing mix strategies. Consumer behaviour is
influenced by some major factors. They are:
1) Cultural,
2) Social,
3) Personal,
4) Psychological
1) Cultural Factors:
Culture is one of the most important factors to understand the behaviours and needs of any
individual customer. Mainly, culture is an important component of every society and found to
be the main reason for a person‘s choice. The effect of cultures on purchasing behaviour is
different from one country to another, so, the marketers need to be extra careful in studying
the traditions and customs of various groups of people, regions they belong to or the
countries. An individual is generally influenced by his family members, friends, surrounding
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cultural environment during his whole life and in return society teaches him values,
preferences and norms of his own culture. For innovative brand to be successful, it is very
essential to be aware of various cultural factors present in each market and to adjust with its
product and marketing strategy. As these factors play an important role in forming the
perception, habits, expectations and behaviour of consumers. For example, Western countries
have the common of inviting friends at home for a dinner or drink. On the other hand, in
country like Japan, inviting someone at home does not match with their local customs. It is
preferred to do that this kind of outing at a restaurant with colleagues or friends. McDonald‘s
is a good example of adaptation or adjustment of consumer‘s with a particular culture
occurring in every market. Well conscious of the significance to have an offer with particular
products to meet the tastes and needs of consumers belonging to different cultures. This huge
fast-food unit has an offering for every market, for eg. a McBaguette, that is offered with
Dijon mustard and baguette particularly in France while a Masala Grilled chicken is offered
in India with Indian spices and so on.
i) Sub-cultures
A society is comprised of several subcultures. Subcultures constitute the groups of people
who share the similar values grounded on a similar experience or a common lifestyles.
Culture is comprised of diverse subcultures which include groups based on racial differences,
varied religions, nationalities, inhabitants of various geographic regions and so on. Marketers
make use these groups by dividing the market into various small segments. For example
Ethnic cosmetic products are more demanded by populations of non-Caucasian people and
skin pigmented people inhabitants of Africa, Arab or India etc. Brands communicate to
customers in different ways, sometimes they create specific products for a culture or a sub
culture and sometimes precisely aimed any specific age group, a gender or a specific sub-
culture. Consumers are generally more open to products and strategies of marketing that
marketers create in particular to target them.
ii) Social classes
Social class include groups that are quite similar and ranked against each other according to
an arrangement of social order. Even if the group is quite large, yet we find some alikeness in
moral values, living lifestyles, general behaviour and interests in individuals belonging to that
same social class. Social class is possessed by every society in some form and to identify that
is very vital for the marketers as the purchasing behaviour of every individual in a given
group of social class is similar. This could be the way to tailor out various marketing plans
according to diverse social classes. Some studies also suggest that the communal observation
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of a brand or product also plays very vital role in buying choices of consumers. The
consumer‘s purchasing nature can alter according to social class. We can understand it in this
way. A consumer will more focus on price if he is from the lower class and on the other
hand, individuals belonging to upper class will be more concerned about better quality
product with innovative features and social benefit could be obtained from the product. Price
of the product won‘t be a concern for them.
iii) Cultural trends
Cultural trends include that trend which is widely followed by the people of same culture. As
the number of people following a trend increases, more people will like to follow it. For
example, if we talk about social networking, Facebook is becoming a cultural trend. Social
networking has widely grown to the point of a necessity to have, particularly among young
generation. Similar is the case of the mobile market growth. Mobiles and Tablets such as i-
Pads have turn out to be a worldwide cultural trend which attracts many customers‘s to have
one for them.
2) Social Factors
Social factors comprises of groups such as reference groups, aspirational groups and member
groups), family members, their roles and status. This clearly show the external influences of
other people on product purchase decision directly or indirectly. Social factors are the key
factors which influence behaviour of any consumer significantly. They are divided into three
main categories: reference groups, family and social roles and status.
a) Reference groups and membership group
Membership groups are the social groups to which any individual belongs and get influenced
with it. These groups are typically linked to its social origin, place of residence, age, leisure,
hobbies, work etc and have ability to form attitude or behaviour of any person. The effect of
reference groups differ from product to product and brand also. For eg., the affect of
reference groups will be more in case of visible products such as shoes, dress, car etc. These
types of groups also comprises of opinion leader which influences other because of his
knowledge, special skills and characteristics. Moreover, reference groups provide a basis for
an individual with several points of comparison about his lifestyle, desires, general
behaviours or consumer habits. Reference groups generally influence the image that any
individual possess about himself and his behaviour, whether the group is membership group
or a non-membership group. Individual may also be affected by any other group to whom he
doesn‘t belong yet desires to be part of and such types of group is known as an aspirational
group. This group show a direct influence on the customer who wished to belong to this
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group and seem to be its member, will always try to purchase the similar products/goods. For
eg., still if he doesn‘t require it yet, a surfing starter might desire to procure sophisticated
products or brands usually used by experienced surfers belonging to aspirational group in
order to find a place nearer to this group and its members. Whereas a teen might want to have
a smart phone or a shoe model worn by the trendy and popular guys crowd from his/her high
school (aspirational group) so that he/she can be accepted by this group. Various brands
employed this very well and correspond, implicitly or not, on the societal profit provided by
their products. The consumer‘s behaviour regarding buying a product and service within a
reference group is identified by several roles that influences them.
The initiator: is an individual who recommends purchasing a product or any service.
The influencer: the person whose suggestion or advice will influence the buying decision of
consumer. It can be a person exterior to group i.e. singer, athlete, actor, etc., but an important
part on which group members rely on.
The decision-maker: the person generally consumer, who will decide which product to be
purchased but in some cases it may be another individual. For example a soccer leader
(supporters or membership group) that will decide, for the whole group, which supporter‘s
scarf to buy and used during the next game.
The buyer: Generally the buyer is final consumer, the person who will buy the product.
b) Family
For any individual, family can be the most influencing factor. It develops a surrounding of
socialization where an individual can progress, shape his/her personality, and attain some
morals. Also, build up opinions and attitudes on varied subjects like society, social relations,
politics, or himself and his desires. Buyer behaviour is powerfully affected by any member of
a family. For this, marketers are trying to discover the responsibility and influence of the
children, wife and husband. If for a particular product, the buying choice is influenced by
wife then marketers usually try to target the women in their ads or advertisement. So here we
can note out that selling or buying jobs can change due to change in customer lifestyles. For
eg., if somebody have never drunk Coke throughout his/her childhood as his/her parents have
explained it as a harmful product full of sugar which is not good for health. Then there are
very less chances that he/she is going to buy coke when he/she grows up as compared to
someone who drinks Coke from the time of childhood.
c) Social roles and status
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In terms of role and social status, the place of a person within his family, his working area,
group of friends and his country club etc. can be defined. A social role explains a set of
activities and attitudes that any individual is supposed to possess and do in accordance with
his profession and position at work, his gender, his position in the family etc. and hopes of
the people around him. Taking an example, a consumer may purchase a car like a Porsche or
a Ferrari, not only for their good quality but also for its outer signs of social success which
are possessed by these kinds of cars. In addition to this, it is likely that if a CEO of company
is driving a small car like a Volkswagen Golf or a Ford Fiesta it might not be taken much
seriously by its clients and business related partners than if he is having a German luxury car.
These types of influences and behaviours can be found at every point and for every social
status and role they have. Yet again, many products or brands have understood this by
building an associated image of their products which can reflect a significant social role or
status.
3) Personal factors
It consists of different variables and stages like age and life cycle stage; lifestyles including
opinions, activities, interests and demographics; financial or economic conditions;
occupation; self-concept and personality. These factors clearly describe why our likening
varies frequently with changes in our `situations‘. Selling nature and decision building power
is clearly found to get influenced by the characteristics of each customer.
i) Age and way of life
A customer does not get the similar goods or services at the age of 20 or 70 years. His values,
environment, lifestyle, activities, hobbies and consumer habits advances throughout his life.
Age and life-cycle encompasses high affect on the customer selling nature. It is evident that
the customers alter the buying of goods and services with the passing of time. Family life
cycle consists of diverse phases such as married couples, unmarried couples and young
singles etc. which facilitate marketers to build up suitable goods for each step. For e.g.,
throughout his/her life, buyer might change his diet from detrimental products (fast food,
ready meals, etc.) to a healthier diet, during his/her mid-life with family earlier required to
follow a little afterwards a low cholesterol diet to evade health problems. The aspects
manipulating the selling choices can be changed. Taking an example, the societal worth of a
brand usually plays an important role in the decision making for a customer at the age of 25,
than at 65 years. The family life cycle of an individual will also show influence on his
lifestyles, values and buying deeds depending on whether he is single, in a relationship, in a
relationship with kids, etc. as well as the kind of city and the region of the country where he
 P a g e | 13

lives (small town, large city, country side, etc.). For a brand or a vendor, it could be attention-
grabbing to understand, recognize, quantify and examine what are the norms and special
factors that influence the shopping behaviour of their customers in order to adapt. For e.g., it
is probably feasible that clients living in New York do not possess the identical behaviour
and buying habits than the ones in Nebraska. For a vendor or a dealer, a deep understanding
and adaption to these dissimilarities will result in real benefit for sales increase.
ii) Lifestyle
The lifestyle of any person consists of its interests, activities, opinions and values. The
lifestyle of a customer will usually show affect on his behaviour and selling decisions. Taking
for example, a purchaser with a balanced and healthy lifestyle will always choose to eat pure
organic products and go to particular grocery stores (and hence will procure clothes, shoes
and specific products) etc., will do a little jogging habitually.
iii) Personality and self-concept

Personality comprises of varied qualities and particular features of any individual. It

represents outcome of the interaction between physiological and psychological qualities of an
individual which results in constant behaviours. It materializes into some traits such as
sociability, confidence, charisma, autonomy, openness to others, ambition, curiosity, shyness,
adaptability etc. Whereas the self-concept is the figure that any individual has or would like
to have of him and he communicate to his followers. For example, Apple cultivates, since its
launch, has an image of novelty, originality, bravery and singularity which is able to catch the
attention of customers who categorize to these morals and who feel treasured in their self-
concept by selling a product from Apple.
iv) Occupation:
The occupation of an individual shows a major impact on his selling nature. For example,
manager at any marketing organization will always try to purchase business suits, whereas a
worker working at low rank in the same firm will buy rugged clothes.
v) Economic Situation
User‘s economic position shows a great influence on his/her selling activities. If the earnings
and later savings of any consumer are more then, he/she will buy more luxurious and
expensive products while a person with little income and savings will purchase cheap or
inexpensive products/services.
vi) Lifestyle
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Another factor affecting the buying nature of any customer is lifestyle they live in. Lifestyle
deals with the mode an individual survive in a society and are expressed by the thing which
surrounds him/her. It is assessed by interests, activities and opinions customer possesses and
outlines his/her whole pattern of acting and interacting in the world.
vii) Personality
Personality varies from one person to another, also with time and place. Thus, it can
significantly influence the retailing nature of customers. In fact, personality does not
represent what one wears; rather it is the sum of all characteristics defining behaviour of a
man in different situations. Characteristic features like aggressiveness, dominance, self-
confidence etc. might prove valuable in determining the consumer behaviour for a specific
type of product or service.
4) Psychological factors
There are many psychological factors which affect buying decision including motivation
(Maslow's hierarchy of needs), perception, learning, beliefs and attitudes. Other people
frequently affect any individuals purchasing decision. The seller required to make out which
people are concerned with the purchasing choices and what part every person plays, so as to
plan marketing strategies that are aimed on these people. Psychological factors which
influence behaviour of any consumer can be divided into 4 main classes: motivation,
perception, learning as well as beliefs and attitudes.
i) Motivation
Motivation is a driving force for the consumers to build purchasing behaviour. It includes
expression which satisfies wants of customers. It usually works at a subconscious stage and is
usually not easy to assess and also affects customer‘s buying behaviour. Every person posses
some desires like biological needs, social needs, physiological needs etc. some needs found to
be more serious while others are least. So a need develop into a motive to complete, when it
is more extreme to direct an individual to look for fulfilment. Motivation is straight linked to
the need of consumer and is expressed in the identical way as buying decision process is
defined in the set of stages. Moreover, brands must aim to create, make conscious or
emphasize a need in the purchaser‘s mind to promote consumers to procure, and thereby
increase sales and, by this he develops a purchase motivation. He will get more fascinated
and interested in considering and buying their product/services. According to earlier research,
it was found that the form of product they advertise and the customers they target accept the
motivation and the want to which their manufactured goods react in order to make them
emerge as the resolution to the individuals need.
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ii) Perception:
Perception includes the process by which an individual pick, systematize and understand the
information he obtain in order to perform somewhat that is sensible. The assessment of any
circumstances at a specified time could decide if and how any individual will act. Opting,
arranging and interpreting the information in a way so that it produces a significant and
meaningful experience of the world is called perception. It includes three different perceptual
procedures which are selective attention, selective distortion and selective retention. Selective
attention helps marketers to attract the purchaser attention while selective distortion involves
interpretation of the information in such a way that it will support the customer‘s belief they
already do.
i) Selective Attention:
Individual always spotlight on a small number of details or stimulus to which he is
subjected. The kind of information or stimuli to which any person is more sensitive
depends on the individual to individual. It becomes more difficult to successfully capture
and keep hold of interest of consumer‘s for brands and advertisers. For e.g.,
unconsciously numerous users did not pay full attention to various banner ads on the
Internet and this sort of procedure is called Banner Blindness. The interest level in
customer fluctuates according to the activity of an individual and also due to other stimuli
present in the surroundings. For example, an individual who is fed up with a subway tour
will be greatly attentive to new ad which are displayed in the tube and is found to be a
latest stimulus that breaks the trip habit for him. Consumers will pay much more attention
to the stimuli which is directly related to a need. For example, a customer who desires to
purchase a new car will give more consideration to car manufacturer‘s ads while
overlooking those for computers. Last of all, consumers are probably more attentive to
stimuli that are novel or not ordinary. For example, a novel marketing publicising or a
message extensively dissimilar from its competitors and is more expected to be kept in
mind by the clients.
ii) Selective Distortion:
In numerous conditions, any information or a stimulus interpreted by the two people will
never be same. Each individual will have a different perception power based on his state
of mind, experience, attitudes and beliefs he has. Selective distortion escort individuals to
understand situations so as to make them dependable on their beliefs and values they
possess. In case of brands, it means that the point they speak about cannot be perceived
accurately in the similar way by the consumers as everyone might have a dissimilar
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insight of it. That‘s why it becomes very important to repeatedly ask customers in order to
recognize their genuine perception of brands. Selective distortion often provides benefits
to well-built and trendy or popular brands. Many studies have revealed that the perception
and product image plays a main role in the approach consumer perceive and judge the
product/services. A number of tests have given away the idea that even if we give
customer the similar manufactured goods, he find that the product tastes well when they
have been advises that it‘s from a trade name they like than when they have been told it‘s
a standard brand.
iii) Selective Retention:
People generally do not keep all the information and stimuli they have been bared to.
Selective retention is when an individual retain and store knowledge from a certain
condition or a particular stimulus whereas, in selective distortion, people likely to
remember information that fit well with their existing observations and beliefs. For
example, clients will always keep in mind the benefits of a product/service or a brand
they usually fond of whereas they will stop thinking about the drawbacks or other
competing products or services advantages.
iii) Learning
Learning generally occurs via action. We get some knowledge, when we act. It entails
transformation in the behaviour resulting from the experience. The learning alters the
behaviour of an individual as he acquires information and experience. For example, after
drinking milk, if you get sick, you had a wrong and negative experience, you relate milk with
condition of uneasiness and you learn that you must not drink milk and stop buying milk
anymore. Somewhat, if you had a good experience with the product or service, you will show
more wish to get it again. So, the experience or learning theories can act as important tool in
marketing by brands.
iv) Beliefs and attitudes
A belief is a sureness that one can have on something. Throughout the knowledge and
experience he acquires, his education and his exterior influences (family, friends, etc.), he
will build up those beliefs which will further affect his buying behaviour. Purchaser possesses
specific attitude and belief towards various goods/services. Such beliefs and attitudes create
brand image and affect consumer buying behaviour therefore marketers are more attracted to
them. Marketers can alter the beliefs and attitudes of clients by initiating special campaigns in
this view. To modify the brand‘s advertising message or amend it‘s positioning in order to get
customers to change their brand awareness.
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Activity: 1.
There are various factors that influence consumer behaviour. Being manager of an
organisation, how would you use these factors to benefit your organisation?
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1.7 Scope:

The consumer behaviour deals with how any person build a decision to use his/her resources
which are limited i.e. money, time and attempt on expenditure of goods and services. The
study deals with in depth understanding of utilization patterns and consumer behaviour.
Within its domain, it contains the answers for the following questions:
- What customers procure: it comprises of goods and services acquired by consumer.
- Why consumer purchase it: correspond to desires and requirements of a consumer
- When do clients buy it: depicts time of purchase.
- Where do consumers procure it: represents location or place of purchase
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- How often the customer buys it: tells regarding time period gaps among two purchases.
- How often the consumer use it: represents regularity of use of a good or service by customer
The scope of consumer behaviour not only includes the authentic buyer but also the other
diverse roles played by him/ different individuals in the buying of a product or services.
1.8 Importance:
The subject of Consumer Behaviour is observed as the order of the marketing thought, an
essential direction in management of marketing. The knowledge possessed by marketer about
Consumer Behaviour helps in understanding and guessing the utilization patterns and
behaviours of people. It helps them to gain information about why a buyer acts awkwardly to
any other consumer; as well as, why a consumer work another way at different situations.
This study helps them to understand the inner and outer factors that oblige people to act out
differently to consumption behaviours and patterns. The study of consumer behaviour helps
the marketers in:
1) Analysing the environment and identifying opportunities and threats:
The information about consumer behaviour can be employed to assist in recognizing the new
opportunities and fight threats. The opportunities may perhaps be in terms of fresh customers,
latest markets, unfulfilled wants and needs (via a study of customer individual determinants
and other influences on the environment). The intimidation might be fought by developing
and applying proper strategies of marketing to fit best in the environment. These strategies
must be vibrant and frequently growing keeping in mind the doubtness in the environment;
this environmental uncertainty is defined as a function of intricacy or complexity and
dynamism. Complexity includes strength, number and correlation between various aspects in
the environment that an organisation has to deal with while dynamism narrates how speedily
the transformations take place in the environment.
2) Segmenting, targeting and positioning:
The studies about consumer behaviour may well apply to section the market, pick the target
market and place the goods or service offering. Discovering the target sectors, considering
their requirements and needs, providing them the right product and service offering and
talking about the offering. With this type of help a marketer do well in the long time run and
assured about his existence and success in a varying environment.
a) Segment the market: Marketer requires spotting out distinctive buyer groups which are
having varying needs or wants, categorizing them on the origin of expressive characteristics
and behavioural dimensions. The descriptive characters might obtain forms of gender, age,
occupation, income, family size, family life cycle, education, personality, lifestyle,
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generation, nationality, geography, religion and social class and the behavioural dimensions
takes shape of uses, use occasion, usage rates, benefits and loyalty status.
b) Select target market: Next to segmentation, marketers opt for one or more market unit to
enter. The division(s) that must have to be targeted must be workable; and there should be a
fit among the market attractiveness and the objectives and resources of company. The seller
should be able to measure the viability of a sector on the foundation of the following criteria,
viz., substantial ability, accessibility, differentiability, measurability and action ability.
c) Position the product offering in the market: The seller must be able to correspond about
the divergent and/or inimitable characteristics of the product.

3) Designing the marketing-mix:

The consumer behaviour study might be employed to devise the 4 Ps.
a) Product: The word ―product‖ consists of both material products and indefinable services.
The matter to address includes product‘s name or a brand, shape, size, labelling, features,
accessories, packaging and complementary products, its term of sale and services,
information about after sales etc.
b) Price: it is concerned about the pricing of the product offered. Its major elements are
terms and conditions of payment, type of payment, price sensitivity, descriptions, different
discounts, discrepancy prices and reaction of customer i.e. with increase in price what is
customer‘s reaction or with price decrease what are the reactions.
c) Place and Distribution: it includes marketing outlets, and encompasses decisions about
selection of channel (direct or indirect), its location, its accessibility and full ease of using a
product offer, products logistics, wholesaling, retailing etc.
d) Promotion: it deals with marketing communication, and the major issues which comprises
of decisions on mix of promotion or communication, the message and media policy (the
content, appeal and context).

4) Designing the marketing strategy:

There exists a close relationship between the Consumer, its Environment and the Marketing
strategy.
a) Consumer: The buyer has some requirements and desires and product preferences as well.
Hence, there is presence of an interplay of Cognition i.e. a knowledge about products and its
various substitutes; Affect includes feelings of favourableness and unfavourableness; and
Behaviour depicting different actions: whether to buy or not to buy.
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b) Environment: refers to the forces existing in the surroundings, which create a

multifaceted and vibrant environment.
c) Marketing strategies: These include planning of defined objectives and accomplished
them by devising a proper mix of marketing.
The Marketing Strategies must be designed in such a manner that it affects customers (Affect,
Cognition and Behaviour) and they get strongly influenced by them. Strategies should be
more flexible and ever growing with alterations in the buyer wishes and desires; also,
changes in the atmosphere where it operates. Proper information regarding consumer
behaviour can be employed in order to build up a ―best fit‖ connecting consumer wants and
needs, the environment where a firm run; and goals and objectives of the firm.
1.9 Interdisciplinary nature of consumer behaviour:
Consumer behaviour is an interdisciplinary part of learning, as it involves many well
established subjects like psychology, sociology; social psychology; anthropology and
economics.

1. Psychology: it deals with any individual and various other factors that influence their
buying behaviour, like, learning, consumer perception and memory, attitude, personality and
self-concept, motivation, attitudes and changes related to it and making of a decision.

2. Sociology: deals with the groups and its affect in buying behaviour of any consumer, for
eg., social group influences, family influences, lifestyles and values.

3. Social psychology: the study of operating of any person in a group or groups and its
influence on their purchasing conduct. It includes reference groups and social class
influences.

4. Anthropology: This is concerned with how a society influences an individual viz.,

national and regional traditions, cultural and cross cultural problems in selling behaviour etc.

5. Economics: This is the study of income of an individual, its purchasing power, and its
impact on the behaviour of a consumer. The primary idea is that customers make sensible
selection for making a decision to buy a product or a service. A consumer has many needs
and wants but resources are limited, so consumers collect information from various sources,
estimate different substitutes and at last make a rational purchase choice.
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Consumers are unique in themselves. A complete and careful understanding of customers and
their utilization nature is vital for any unit or firm to succeed. In order to recognise and
forecast consumption patterns and behaviours, consumer marketing research becomes
essential.
1.10 Strategic applications:
The principles of Consumer behaviour are employed by the marketers in different sections of
marketing in order to achieve some particular objective. Let us discuss how:
1. Analysing market opportunity:
Studies related to consumer behaviour helps marketers in identifying the gaps existing in
society. These gaps are unfulfilled needs and wants of consumer. This requires a close
examination of the style and surroundings existing in the lifestyles, consumer‘s income
levels, marketplace and other emerging influences on clients. This helps in revealing
discontented wishes and requirements of consumers in a market place. With the increase in
number of dual income households, greater importance is given to convenience goods for
household items such as mixer grinder, vacuum cleaner, washing machine, childcare centres
and many more. Mosquito‘s repellents are also a good example of marketing reaction to
valid and unsatisfied consumer requirements.

2. Selecting target market:

Reviews of markets over and over again help in recognising different customer sections with
extremely distinctive and limited requirements and needs. Identification of these types of
groups, their behaviour and getting knowledge about how they formulate purchase decisions
allow the marketers to plan, invent and market products or services which suit to their wants
and desires. For example, studies on behaviour of consumer exposed that customers generally
prefer a shampoo sachet rather than purchasing a shampoo bottle priced more than 60 rupees
or more. Well identifying such a kind of information helps marketers and producers to have a
competitive edge over their competitors.

3. Marketing-mix decisions:
Once the unfulfilled desires and requirements are recognised, the next step for a marketer is
to find out the exact combination of product/service, price, promotion and distribution. Again
at this point, consumer behaviour studies facilitate marketers in finding answers to many
confusing questions.
(a) Product:
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The marketer usually decides to create that type of product or service which can convince or
satisfy unfulfilled wants or needs of consumers. Other decisions are about the size, shape and
features of product. The marketers have to make a choice with reference to their service,
packaging of products, accessories and warranties to be provided with that product to the
customer. For Example: Firstly, Nestle introduced Maggi noodles in market with masala
flavour but with course of time, in view of consumer preferences in several regions, the
company bring in some more variants of magi noodles in sambar, garlic and many other
flavours.
(b) Price:
Price is another essential constituent of marketing mix. It is the duty of a marketer to decide
at what price a product or service is to be sold. Company‘s revenue is influenced with such
decisions. It is the marketer, who has to decide whether to charge at higher or lower rates
than their competitors. He also finds answers to various other questions, such as; will the
lower price stimulate the consumer‘s purchase, effects of any price discounts on consumer?
Do consumers recognise lower price as being an indication of poor quality of a product?
Before answering these questions, the seller should be aware of how the company‘s goods are
perceived by consumers, the significance of cost to them to stimulate a purchase and how
diverse price levels are going to influence sales. It is only possible through studies on
consumer behaviour so that the marketer can expect to discover answers to some of these
important questions.
(c) Place:
The next decision is that of distribution channel which tells about where and in what way
services or products are to be offered for sale. Whether to sell product via all the outlets of
retailing or by selected ones only? Should the marketer use only the outlets, which are selling
the products of competitive brands, or should new outlets selling only the marketer‘s brands
should be preferred? How important is the location of retail outlets from consumers‘ point of
view? Should the company use direct marketing or other means of marketing are more
preferred? The answers for all these above questions are well-found by research on behaviour
of consumer. For Example, When Eureka Forbes introduced their vacuum cleaners into the
market many years back, very few consumers were known to this product and many of them
were not ready to purchase it. Awareness regarding the product among customers was very
little and no retailing shop was ready to carry the product. It was going towards a complete
failure. Under such situations, the company decided to buy their product only by selling it
personally, with the help of their Salesforce calling straight to the consumer at their home. By
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adopting this method of selling, their salespeople had sufficient instance to describe and
reveal various features of vacuum cleaner and persuade a prospects to purchase it. Selling
their product at retail outlets did not bring them suitable results. This approach was based on
understanding the customer behaviour and which provide them preferred results.
(d) Promotion:

Promotion reflects communication with the consumers regarding the product. The
essential methods of promotion include sales promotion, advertising, publicity, personal
selling and direct marketing. It is the duty of a marketer to find out the method that might
be appropriate to efficiently reach the target consumers. Should advertising alone be used
or in a combination with sales promotion or a mixture of all tools? The company must
know about their target clients, preferences, their location, the media they have access to
etc. in some cases, like industrial products, the advertising content is very little or it don‘t
exists. The only way by which these products are promoted is through sending a brochure
which contain important technical specifications for the clients and the salespersons to
make follow-up visits. On the other hand, Consumer products get the maximum stake of
advertising. Take an example of Pharmaceutical industry. It exclusively uses the tool of
personal selling for selling of drugs. Insurance companies on other hand uses the mixture
of both advertising and personal selling.

4. Use in non-profits and social marketing:

Studies on consumer behaviour are also useful in planning the marketing strategies by
governmental, social and non-profit organisations to build their important programmes of
environmental concerns, AIDS awareness, driving safety, family planning, crime
prevention against women and many other more effective ways for the society benefit.
Some world organisations like UNICEF, Red Cross etc. generally employ consumer
behaviour understanding for selling of their services and product organisations.

Activity: 2.
Suppose you are a strategic manager. How would you take the advantage of these strategic
implications in your business? Let the business is related to telecommunication sector:
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Check your progress: 2.

d. What are the major factors that influence consumer behaviour: ____________,
______________, _______________, ________________.

e. Consumer behaviour borrows heavily from ____________________ ,

_____________________________disciplines.

f. The four P‘s of marketing mix are ______________________, ________________,

___________________ and _____________________.
1.11 Summary:
Consumer behaviour is the study of the processes involved when individuals or groups select,
purchase and use products, services, ideas or experiences to content their needs and desires.
In early days of growth of this field, it was often referred to as buyer‘s behaviour, reflecting
an emphasis on the interaction between producer and consumer at the time of purchase. A
consumer may purchase, use and/or dispose of a product, but these functions may be
performed by different people. In addition, consumers may be thought of as role players who
need different products to help them play their various parts. Various factors influence
consumers to develop preferences for various product and brand. Many of these factors
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cannot be directly controlled by marketers, but understanding their impact is essential as

marketing mix strategies can be developed to appeal to the preferences of the target market.
The study of consumer behaviour focus on the way an individual make decisions to spend
their available resources, i.e. time , money and effort on consumption of goods and services.
As an interdisciplinary area of study, the subject borrows heavily from psychology,
sociology; social psychology; anthropology and, economics. It becomes important for
marketers to study consumer behaviour due to its strategic application too.

1.12 Answers to Check your progress:

a) (individuals or groups), (needs and desires)
b) (buyer‘s behaviour), (interaction), (purchase)
c) Culture, Reference groups, Social class, Family, Marketing methods
d) (Cultural, Social, Personal, Psychological)
e) ( psychology, sociology; social psychology; anthropology and, economics.)
f) (product, place, price , promotion)

1.13 References:
1. Consumer Behavior: Building Marketing Strategy, 12th Edition by Delbert Hawkins and
David Mothersbaugh

2. Consumer Behavior by Wayne D. Hoyer, Deborah J. MacInnis and RikPieters

3. Consumer Behavior (10th Edition) by Leon Schiffman and Leslie Kanuk

4. Consumer Behavior (11th Edition) by Leon G. Schiffman and Joseph Wisenblit

5. Social Psychology of Consumer Behavior by Michaela Wanke

6. Consumer Psychology by CathrineJansson-Boyd

7. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

1.14. Suggested readings:

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1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education

2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill

3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning

4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning

5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books

6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.

7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.

8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.

9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

1.15. Terminal and modern questions:

Q1. Write a detailed note on consumer behaviour?
Q2. What are the various factors that influence consumer behaviour?
Q3. What is the strategic importance of consumer behaviour for a marketer?
Q4. What are the keys‘ in understanding consumer behaviour?
Q5. Write a detailed note on the scope of consumer behaviour?

1.16 Glossary:
 Aspects: a particular part or feature
 Utility: a state of being useful, profitable and beneficial
 Sophisticated: showing worldly experience and knowledge of fashion and culture
 Rugged: having an uneven surface
 Innovative: featuring new methods or original ideas
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LESSON - 2

Consumer Buying Behavior

Structure:

2.0 Learning Objectives

2.1 Meaning and Nature of Consumer Buying Behavior

2.2 Consumer Buying Process

2.2.1 Need Recognition

2.2.2 Information Search
2.2.3 Interest
2.2.4 Evaluation
2.2.5 Purchase Decision
2.2.6 Post Purchase Feelings

2.3 Changes in Consumer Behavior and Its Effect on Marketing

2.4 Behavior of Indian Consumers

2.5 Summary

2.6 Glossary
2.7 Answer to Check Your Progress
2.8 References
2.9 Suggested Readings
2.10 Terminal and Model Questions
2.0 Learning Objectives:

After studying this chapter; you should be able to understand:

 Meaning and Nature of Consumer Buying Behavior

 Steps Involved in Studying Consumer Behavior
 Change in Consumer Behavior and its effect on Marketing
 Behavior of Indian Consumers
2.1 Meaning and Nature of Consumer Buying Behavior

Everyone is buying and consuming goods and services in daily life. The whole behavior of a
person while buying may be termed as consumer behavior. It is an attempt and forecast of
human action in the purchasing role. Understanding the consumer behavior of the target
market is an important task of marketing management.
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Philip Kotler remarks that, "Consumers are neither so simple that they do not require to be
studied, nor so complex that their study is not possible." Consumer behavior consists of both
physical as well as mental activities. The study of consumer behavior provides a sound basis
for identifying and understanding consumer needs. It is concerned with consumer's buying
behavior rather than actual consumption.

According to Schiffman and Kanuk, the study of consumer behavior is the study of how
individuals make decisions to spend their resources It includes the study of what they buy,
why they buy, when they buy, where they buy, how often they buy it and how often they use
it. Thus, the term consumer behavior as defined by Schiffman and Kanuk is more widespread
because it starts before actual buying and goes on even after the purchase of the product and
services. The main object of studying consumer behavior is to satisfy their needs.

According to Walter and Paul, "Consumer behavior is the process whereby individuals decide
whether, what, when, where, how and from whom to purchase goods and services." Thus,
consumer behavior includes the acts of obtaining and using goods and services including
sequence of decision processes that precede and determine these acts. An understanding of
consumer behavior is essential for effective marketing planning. The nature of consumer
behavior can be expressed in the form of 'buying patterns'. A marketer must know:

 Who influences the buying decision?

 Who makes the buying decision?
 Who makes the actual purchase?
 Who finally uses the product?
2.2 Consumer Buying Process

The buying process of a consumer is the decision making process leading towards purchase
function. The buying process has composed of many stages and is influenced by number of
factors. The customer thinks much before taking purchase decision. For some items he takes
no time to decide whereas for some items like luxurious one he takes much time to decide
about his purchases. The buying process passes through following steps:

2.2.1 Need Recognition

The buying process starts with the arousal of the needs. The need is activated through internal
or external stimuli. The basic needs of a human being are the internal stimuli‘s which inspire
him to go in for purchase decision. It includes needs for hunger, thirst, sex etc. On the other
hand the needs which aroused from the objects which we saw in the external environment are
the external stimuli. For example when we saw some product in the shop while purchasing
some other product is an external stimuli. The marketer must identify the drive that might
connect to the potential buyer and make the buyer feel that the product can satisfy his needs.

2.2.2 Information Search

After arousing the needs the consumer tries to get as many as information‘s about the product
or services he needs. If needs are more intensive, the consumer enter the state of active
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information search. He tries to get more information‘s about the product or services. The
followings are the main source of information to a consumer.

 Personal Sources: It includes the family, friends, neighbors etc.

 Commercial Sources: The information from this source is got from advertisements,
salesman, dealers etc.
 Public Sources: It includes mass media, consumer rating organizations etc.
 Experimental Sources includes handling, examining, using products etc.
The marketer finds it worthwhile to study the consumer information sources to plan
marketing strategy efficiently accurately.

2.2.3 Interest: The consumer‘s interest is indicated in his willingness to seek further
information about a product. At this stage the consumer is actively involved in the buying
process and pay proper attention to get maximum information‘s about the product and
services. If his interest is lost somewhere in between his attention may be diverted resultantly
he may be losing his interest to buy the product or services. The marketer should focus
objectively to maintain his interest and must try to attend his queries efficiently.

2.2.4 Evaluation: Once the interest to buy the product or services is generated the consumer
enters to the subsequent stage of evaluation and intention. It is a stage of mental trial by the
consumer on the product or services. In this stage the consumer assigns relative weights or
ranks to different products and services and evaluates the pros and cons of buying those
products or services. After this stage the consumer make up his mind set either to buy the
product or services or to leave them. On the basis of the evaluation process the marketer can
also develop the product and the segment of the market in accordance to the needs and
requirements of the customers.

2.2.5 Purchase Decision: There are some other considerations too which play an important
role for taking buying decisions:

 Attitude of the family members, relatives and friends.

 Anticipated situational factors as expected family income.
 Expected total cost and expected benefits of products and services.
The consumer takes final decision after considering all such factor. In this stage of buying
process a consumer take the final decision to buy the product or services.

2.2.6 Post Purchase Feelings: This is a final stage of consumer buying process. If the
product or services matches with the expectations, the consumer will be satisfied with the
products or services offered to him to buy. On the other hand if it falls short of his
expectations, he will be dissatisfied. Post purchase behavior originates out of the experience
regarding the use of the product and services. This behavior is reflected in repeat purchases
from further purchases. If product use experience indicates satisfaction, then repeat purchases
will occur, other not.
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Hence, the very spirit of consumer behavior study is the gratitude of the fact that the
consumer is a multifaceted person, influenced by the social environment in which he lives,
his family, his society, his friends, his colleagues etc. leaving some notion on him and
influencing him in his day to day life.

2.3 Change In Consumer Behavior and Its Effect on Marketing

It is difficult to know the type of motive under which a buyer is purchasing a product.
Because there are a number of motives, and the nature of these motives is ever-changing. A
number of reasons for changing the consumer behavior exist and these influence the
marketing strategy of the products or services concerned. Some important reasons are as
under:

 Impulse buying: Impulse buying is made in a hurry or without application of mind.

The buyer is mainly concerned with cost effectiveness. Such changed behaviors of a
buyer affect the marketing and change in packaging and promotion actions.
 Desire for ease: Nowadays, majority of the people desire to enjoy more leisure and
try to buy items from the nearest shop. They expect a diversity of goods for selection.
It should be packed in different sizes and weights so that these can be bought in
mandatory quantum Therefore, marketer should design the product, its price its
distribution which increases convenience.
 Increased leisure time: The majority of the population favor leisure living.
Therefore, a manufacturer should design his product which increases the leisure time
of the consumer.
 Desire for conformity: Consumers buys those products which others are buying.
Such aptitude and desires of consumer bring change in his behavior. This help the
marketer to enhance the sales in a particular area.
 Upgraded tastes and desire for elegance: Increase in the income bring changes in
their capacity for spending. It affects the marketing of high quality products and
products packed in a good-looking packaging‘s.
2.4 Behavior of Indian Consumers

Indian economy is an agriculture economy. Majority of the population lived in villages and
small towns, people are illiterate or less educated, suffering from poverty and in most of the
products sellers still lead the market. On the other hand, with the increase in urbanization,
growth of education, transfer of labor towards industries is altering the consumption pattern
of Indian economy. Due to variety in social system, customs, religion, language, food habits,
cultures, sub-cultures, etc. the behaviors of Indian consumers is not identical. Following
characteristics are found in their behavior:

 Bargaining: Indian consumers are very fond of bargaining. They have a preference of
buying goods by reducing the price as told by the seller. Indian sellers too don't frame
a uniform price policy. In rural markets, the trend of bargaining still persists, but in
urban areas now, majority of the population prefer one price policy of the seller. They
prefer to visit stores where there is no bargaining.
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 Price consciousness: Because of less income in the agriculture occupation, Indian

consumers focus on price instead of the quality of the product. They prefer to
purchase low priced product, knowing their low quality. But a little change has come.
Now consumers living in urban areas are quality conscious. They purchase quality
products even at higher price.
 Brand consciousness: Because of less education facilities, majority of the rural
population are still unaware about the standard brand names of the product. They are
concerned with the product and not with its brand name. Now they like branded
products and they have brand loyalty of some reputed manufacturers.
 Complaining: Indian Consumers are less complaining people. They believe that if a
seller cheats on them, God will punish him. They are innocent and illiterate people.
They have started exhibiting their complaints through media and representation before
'Consumer Forums' under Consumer Protection Act, 1986.
 Role of women: The role of women is increasing day by day particularly in buying
decisions and buying from the market. Women are generally interested in varieties
and prefer good looking products.
 Changing consumption pattern: Because of increase in education, increase in
income, increase in standard of living and also desires of more comforts, the pattern
of consumption is now being changed. Indian consumers are now more desirous of
comforts and luxury products.
 Guarantee: Indian consumers are more interested in guarantee and warrantee. They
prefer to purchase those commodities which are guaranteed by the manufactures,
regarding quality, durability, efficiency and effectiveness.
 Credit: Credit facilitates the consumers to buy those products which they cannot buy
with their current cash resources. Such facility increases the trade of the firm. Indian
consumers like to buy the products on credit, because their disposable income falls
short to fulfill the demand for consumer durables.
Indian economy is the second largest consumer economy. There is much scope for all
types of goods and services. Proper understanding of consumer behavior will help to learn
the consumer's motives and needs which serve as the foundation of the modem marketing
concept.

Check Your Progress 1

Point out whether the following statements are True or False

1. The study of consumer behavior is the study of how individuals make decisions.

2. Resellers are not consumers.

3. The study of consumer behavior helps in market differentiations.

2. The study of consumer behavior has no significance in competition.

5. Family income has no impact on consumer behavior.

6. The Opinion leaders can only change the mind set not the behavior.
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7. Learning means any change in behavior which comes as a result of practice.

8. Attitude is a significant device for predicting consumer behavior.

2.5 Summary: Consumer Behavior is the process of buying, different individuals may
be involved or only one member may do all the four tasks. Hence, for sound marketing
planning the study of the nature of consumer behavior is important. The whole behavior
of a person while making purchases may be termed as consumer behavior. The study of
consumer behavior is of vital importance while taking decisions about quality, quantity,
packaging, branding and pricing products, selection of distribution channels, advertising,
sales promotion activities, etc. The behavior of consumers with regard to purchases is
influenced by various controllable and uncontrollable variables. Most of these factors are
interdependent and interrelated. These variables affect different consumers differently
leading to difference in their behavior. The buying process of a consumer is the decision
making process leading towards purchase function. The buying process has composed of
many stages and is influenced by number of factors. The customer thinks much before
taking purchase decision. For some items he takes no time to decide whereas for some
items like luxurious one he takes much time to decide about his purchases. There is much
scope for all types of goods and services. Proper understanding of consumer behavior will
help to learn the consumer's motives and needs which serve as the foundation of the
modem marketing concept.

2.6 Glossary:
 Consumer behavior: Consumer behavior is the process whereby individuals decide
whether, what, when, where and how and from whom to purchase goods and services
is the process whereby individuals decide whether, what, when, where and how and
from whom to purchase goods and services.
 Economic Determinants: Economic Determinants refer to personal income,
disposable income, discretionary income of the consumer, the rate of increase in
income, the degree of economic inequality, regional imbalances, inflation, etc.
 Sociological Determinants: A consumer is a social human being. Many social
factors influence his behavior. The study of sociological factors provides reasons that
why a consumer behaves in a particular manner. These groups of persons are: (i)
Family, (ii) Reference group, (iii) Opinion leader, (iv) Social class and (v) Culture.
 Opinion Leader An opinion leader plays an important role in influencing the buying
behavior of his followers. He is the innovator in the group who first tries new ideas
and goods and then refers them to his followers. Such person or persons are known as
opinion leaders.
 Psychological Determinants: Psychology has contributed much to the marketers to
understand the customer behavior. Psychologists also provided certain clues as to why
a consumer behaves in a particular way. The buying decisions are influenced by
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certain psychological factors such as motivation, perception, learning, beliefs,

attitudes and basic needs.
 Consumer Buying Process: The buying process of a consumer is the decision
making process leading towards purchase function. The buying process has composed
of many stages and is influenced by number of factors. The customer thinks much
before taking purchase decision.
2.7 Answer to Check Your Progress 1.
Answer Key: 1,d. 2,d. 3,b. 4,b. 5,d. 6,d.
Answer to Check Your Progress 2
Ans: True: 1,3, 8, 9,10 False: 2, 4, 5, 6, 7.

2.8 References:

1. "Marketing Mix Definition". Investopedia.com. Retrieved 9 April 2015.

2. McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Homewood,
IL: Irwin.
3. Booms, Bernard H.; Bitner, Mary Jo (1981). "Marketing Strategies and Organization
Structures for Service Firms". Marketing of Services. American Marketing
Association: 47–51.
4. Needham, Dave (1996). Business for Higher Awards. Oxford, England: Heinemann.
5. Kotler, Philip (2012). Marketing Management. Pearson Education. p. 25.
6. Borden, Neil. "The Concept of the Marketing Mix" (PDF). Suman Thapa.
Retrieved 24 April 2013.
7. Kotler, P. and Keller, K. (2006), Marketing and Management, Pearson Prentice Hall,
Upper Saddle River, NJ, USA
8. McCarthy, Jerome E. (1975)‖Basic Marketing: A Managerial Approach," fifth
edition, Richard D. Irwin, Inc., p. 37.
2.9 Suggested Readings:
Kotler, Philip (2012). Marketing Management. Pearson Education
2.10 Terminal and Model Questions
1. Discuss the importance of buyer behaviour study. Explain the factors affecting buyer
behaviour.

2. Discuss the importance and difficulties in understanding buyer behaviour. Explain

various economic factors which influence the buyer behaviour.

3. Why should we study the buyer behaviour ? Explain any two theories of buyer
behaviour.

4. What is buyer behaviour? Explain the various techniques of studying Indian buyer
behaviour.

5. What are buyer's motives? Discuss various factors affecting consumer's behaviour in
Indian context.
 P a g e | 34

6. Explain the meaning of buyer behaviour. Discuss the various theories underlying it.

7. Explain different theories of buyer's behaviour and also explain the factors effecting
buyer's behaviour.

8. What is buyer behaviour? What is the nature of Indian consumer buying behaviour?

9. What is consumer behaviour? What are the different determinants of consumers

behaviour?

10. What are buying motives? Spell out the relevance of buying motives of various stages
in the buying process.
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LESSON: 3
Consumer Motivation
STRUCTURE
3.0 Introduction
3.1 Definition
3.2 Nature and types
3.3 Process of motivation
3.4 Types of motivation
3.5 Dynamics of motivation
3.6 Arousal of motives
3.7 Effect of consumer motives on market place
3.8 Motivational conflict
3.9 Needs vs. Wants
3.10 Types of needs
3.11 Classifying consumer needs
3.12 Motivational theories
3.13 Summary
3.14 Answers to Check your Progress
3.15 References
3.16 Suggested readings
3.17 Terminal and Model questions
3.18 Glossary

3.0 Objectives:
After reading this lesson, you will be able to:
 Explain the concept of motivation
 Enumerate Nature, dynamics and different types of motives
 Discuss the concept of needs
 Describe the theories of motivation

3.1 Introduction:
Consumer motivation is the hidden force which initiatives the customers to satisfy their needs
and wants, whether physically or psychologically, by purchasing and using of goods and
services. Few of the motives are very basic and simple and it is impossible to endure without
them like nutrition, water, friendliness, and a roof over your head. Rest of the motives are
quite intricate, like the need for love, prestige or admiration. Marketers have long well-
thought-out it as a driving force behind maximum purchase behaviours. Consumer motivation
can be observed as a purpose for satiating needs and wants.

Motivation process starts with the recognition of inert needs, such as hunger, thirstiness etc.
Once the need is known, there ascends a desire to reduce it. The need is transformed into
want or desire. Desire is specified with precise goal. For example, if you realize that you are
hungry or thirsty then you start thinking about options to satisfy your hunger and thirst. It
becomes a desire when you to go to restaurant and search for the options of cold drinks and
burgers available. The aim is reached through a behaviour that fulfils the need and lessens
tension—you go to a restaurant and order a burger and a cold drink.

It has often seen that some people are more proficient in work than others. The gap in their
proficiency can be related either to their desire or readiness to accomplish a task. In addition
to ability and talent, level of motivation employees has decides their efficiency. Motivation is
 P a g e | 36

an internal impulse or aspiration in employees to make them to work in the paramount

abilities.

3.2 Definition of Motivation.

Dalton E. McFarland defines motivation as: ―Motivation refers to the way in which urges,
desires, drives, striving, aspirations, or needs direct, control or explain the behaviour of
human being".

Motivation can also be defined as the power or force that encourages a person at work to
intensify his preparedness to use his optimum skills for the fulfilment of particular objective.
It leads an individual towards accomplishment and persuades him to continue actively.

The word 'motivation' has been derived from 'motive', which expresses a need, effort, desire
or urge within an individual. Motives are subject dependent and internal as they expresses a
need of a person. 'Need' is something within an individual that impulses him/her to act.
Behaviour or conduct of an individual is very much dependent on these needs or motives.
Motives provides a path to an individual behaviour as they are directed towards some definite
conscious or unconscious 'goals'.

An example of behaviour directing towards a goal is cooking and eating food. Unachieved
wants cause tension within an individual and employ him/her in exploring a manner to ease
this tension. Individuals develop some definite goals for themselves and put their efforts to
succeed in achieving them. When they are successful in their endeavour, new needs and
desires arises which lead them to set new goals. On the other hand, if they are unsuccessful in
their attempt, they engross themselves in constructive or defensive behaviour.

3.2 Nature and types of motives:

The study of consumer motivation is conducted mainly to address the question related to
shopping reasons of people. The people shop for a different reasons and it is very difficult to
make generalizations. For example: shopping for food can be seen as a way of satisfying
some basic survival need. Usually, most of the people purchase far more food than what they
in reality need for survival.

Personal Motives:
1. Role Playing –certain shopping actions are associated with a specific person in the family,
for example, housewife, mother, student, etc.
2. Change –shopping can be a refreshment, or a change from daily doings.
3. Pleasure –shopping may be related to mood, for example, individuals like to engage in
such activities to enjoy or ease depression.
4. Learning –shopping is a best tactic to learn about current styles and fashions.
5. Physical Movement –some people like to roam and buy in a mall as it constitutes to their
exercise.
6. Sensory Stimulation –some of the shoppers like handling merchandise, background
music, the fragrance of perfume counters, etc. They often come to the malls to indulge in
such a setting.

Social Motives
1. Societal Communication – some individuals considers shopping as a chance to interact
with friends, visitors, sales staff, etc.
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2. Peer Association –some shops make certain special arrangements for their customers.
They make provisions for the meetings of their customers with key reference groups; e.g.
individuals with common interests, members of an association, etc.
3. Status & Authority –shopping is occasionally perceived as means of commanding respect
and consideration, for e.g. during meetings with sales staff.
4. Desire of Negotiating –bargaining is just like an inbuilt feature of some shoppers. So for
them, shopping is a way of obtaining goods at a better price or of priding themselves on
the ability to make wise purchases.

The above motives are not mutually exclusive. It is estimated that about 70% of the
population visits a shopping centre at least once in a week for numerous reasons. Shopping
has become more than visiting a store to purchase products. There are times when people go
to the mall with intents of not spending any money at all.

3.3 Process of Motivation:

Motivation refers to the process that cause people to behave in a particular manner as shown
in Fig-3.1. From a psychological view motivation occurs when a need arises that the
consumer wishes to satisfy. When a need has been activated, a state of tension exists that
forces the consumer to attempt to reduce or eliminate the need. This need may be utilitarian
(a desire to achieve some functional benefit, as when a person eats green vegetables for
nutritional reasons) or it may be hedonic (an experiential need, involving emotional responses
or fantasies). The difference between the two is, however, a matter of degree. Marketers try
to create products and services that will provide the desired benefits and allow the consumer
to reduce this tension. Whether the need is utilitarian or hedonic, a difference exists between
the consumer‘s present state and desired ideal state. This gap creates a state of tension. The
level of this tension determines the urgency the consumer feels to reduce the tension. This
degree of arousal is called a drive. A basic need can be fulfilled in many ways, but the
specific route an individual selects depends on his/her past understandings/experiences and
on the beliefs, which are influenced by social, spiritual, traditional or nationality.
 P a g e | 38

Fig. 3.1

Activity: 1
Being a manager of a company, explain, how would you motivate your consumers to
take a specific decision by following the above given diagram:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______________________

3.4 Types of motivation:

Two known types of motivation exist:
Positive motivation
Negative motivation.
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A positive motivation is defined as a driving force which moves an individual towards

an entity or individual or condition. Sometimes, it is also termed as person motivation.

When a driving power induces an individual to move away from some person or some
entity or object, then it is termed as a negative motivation.

3.5 Dynamics of motivation

 Needs are never fully satisfied.

 When an old need satisfied then a new need emerges.
 Individuals who achieve their goals set a new and higher goal for themselves.
Check your progress: 1
i) Consumer _________________is the hidden force which drives the customers to satisfy
their needs and wants.
ii) The initial points in the process of motivation includes _______________ or
____________________ of an individual.
iii) The motives of an individual provide path to human behaviour as they are focused
towards conscious or sub-conscious ______________.

3.6 Arousal of Motives:

The stimulation of a specific set of requirements at a definite instant of time. It could be
produced by the individual‘s physical condition, due to emotions, cognitive processes or due
to environment.
• Physiological arousal
• Emotional arousal
• Cognitive arousal
• Environmental arousal

1. Physiological Arousal Physical requirements at some definite instant are based on the
individuals‘ bodily condition at that time. Ex. As the level of our blood sugar level drops or
as stomach starts to contract, it will elicit awareness of a need i.e. hunger. We can take
another example: As the temperature of our body falls, it starts to shiver, and it makes us
aware of the need for warmness.
2. Emotional Arousal Sometimes people starts day dreaming which leads to the stimulation of
hidden requirements. Day dreaming is common in unsatisfied people who try to accomplish
their objectives. They visualize themselves in wanted situations in such dreams. Take an
example of a young girl spending time in internet single chat room.
3. Cognitive arousal There are times when accidental thoughts leads us towards awareness of a
need. Take an example of a commercial that reminds us of our home may generate prompt
desire to talk with parents.
4. Environment arousal surrounding/environment at a particular instant may also contribute to
an arousal in an individual. Take an example: when time is 8‘o clock or smell of baked
products or passing through a restaurant, all these stimuli triggers the need for food.
3.7 Effect of consumer motives on market place:
There are several ways in which motives effect consumer behaviour in market place. Let us
discuss some of these effects
Decision making
Conflict resolution
Consumption patterns.
 P a g e | 40

Impact on Decision Making

In making a decision regarding the purchase of a product or service, customers come across
several choices. At the initial step, the customer selects a basic class of goods or services,
like, a traveller chooses to travel. In next step, he/she decides on the mode of travelling i.e. by
air or rail or by bus and at final stage, the consumer makes a particular choice, as the choice
is made to go by train; the choice is made between, Rajdhani or Shatabdi. Strengths of
motives plays important role in dealing with different alternatives. Example, individual who
decides to travel might be interested to watch certain team performing in that place. He/she
may have decided to visit the place due to emotional attachment with the team. The choice of
train instead of plane to travel may be due to difference in fare.
Conflict Resolution
Different motives pull consumers in different directions. Example, a girl sees a beautiful
diamond necklace at a jewellery shop and is wants to buy it but her monthly budget is not
permitting it. If obtaining the necklace would content her need of looking noble then it
disturbs her necessity of being financially responsible and avoid getting trapped in debt. In
this way, she feels stuck in conflict among two different drives and tries finding a solution for
it.

Consumption Patterns
Drives when triggered leads to a specific action. The need for accomplishment affects
behaviours such as performing better at workplace; the need for authority affects behaviours
such as competition for first position in a 400 metres race; the need for association affects
actions of an individual, like helping other students in class in order to be their friend.
Consumer motives affect actual marketplace behaviour. As people like to eat more often at
hotels or restaurants, there is a query regarding its contribution in rising fatness in people due
to the consumption of junk foods. Certain consumers are motivated to eat only healthy
vegetables and foods but their actions come in conflict with their motives. A new study on
the topic reveals showed that by affixing dietary labels on the menu charts can aid consumers
decide regarding the food to eat. The findings suggested that consumers might be resulted
from ―halo effects‖ that is formed due to their opinion of some big brand at which they
usually eat. For example, if an individual goes to Subway, he may think that all the offerings
available there are fresh and healthy.
Many consumption behaviours are sprightly associated to understandable motives, others
include a complex structure of dissimilar motives. A research was conducted to find out the
conflict between different motives involved in the purchase of high-risk leisure
activities. This research found that individuals involved in such activities like free-falling,
hiking, scuba diving are inspired by different motives at different steps of such activities.

Initially, motive includes interest, excitement, and a wish for adventure.

Next, motives for continuing the adventurous activity includes development of efficiency
(i.e., a wish to grow a talent for satisfaction and societal standing), the making of a fresh self-
identity, and intense experience.
At last, motives of increased participation which includes a want for extreme experience of
adventure and enjoyment, a need of societal standing, and a need for superior means of
communication that supports in bonding with others.

3.8 Motivational conflict:

Consumers have many motives and there are numerous such circumstances in which these
drives get triggered. There are repeated conflicts among motives. The resolving pattern of
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these conflicts sometimes disturbs consumption behaviours of consumers. In several cases,

marketer could analyse circumstances and can find out the expected result in a motivational
conflict, offer a better resolution to them, and attract the support of users confronting such a
problem. There are different types of motivational conflict that is of interest to managers:

Approach-Approach Conflict
Individuals in this conflict faces a problem of selecting between approaches that are equally
attractive. For example, a girl has kept 50000 rupees for a break and has planned a tour to
Shimla, to spend some time in calming and cool weather. At the same time, a colleague calls
her and requests her to accompany her for some days for a break in Goa. She loves to surf, so
both options are equally attractive. Now the question arises, how will she decide? Marketers
dealing with travel companies know that consumers face difficulty in choosing between the
options. So the marketers use different tag lines for different places to attract tourists. Tag
line of ―Paradise on earth‖ for Kashmir is an example of competing campaigns used by
companies to help consumers resolve approach-approach conflicts.

Approach-Avoidance Conflict
This conflict entails positive as well as negative features. Several people wants to buy an
expensive sports car. It signifies enjoyment on the roads, a chance to impress friends, and an
escape from routine life. But expensive sports car means limitless use of family moneys. Fuel
and upkeep costs, and costly repairs. To make decisions in such conflicts, sports car
marketers usually stresses on reliability, ease of repairs, and fuel economy.

Avoidance-Avoidance Conflict
Resolving this conflict is particularly a very difficult marketing task. It involves selecting
between two undesirable choices. For example, purchasing new tyres for vehicle is very
costly. But if the consumer has to choose from the alternatives of keeping the old set of tyres
or taking the risk of slipping on the highway in a thunderstorm, most will select the slighter
of two evils and would prefer to buy a set of fresh tyres. Tyre producing companies identify
avoidance-avoidance conflict, so they promote their strengths in order to overcome the
consumer‘s likely opposition through ads. They try to display information about the product
quality in their ads. For example: ―Goodyear—serious technology‖ and promise of safety and
security ―Goodyear—freedom from worry‖.
Activity: 2
Being manager of an organisation, explain, how would you make balance between these
motivational conflicts:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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___________________________________________________________________________
____

3.9 Needs vs. wants

The mode in which a need is contented is influenced by people past understandings, learnings
and their ethnic environment. Choosing a specific offering to content a need is called want.
Example, two schoolmates may be very hungry and their bellies are almost empty during
lunch time. If both of them have not eaten anything since last night, then the need for food for
both of them could be the same. But, the way in which each of them would like to content
this need might not be the same. If, one of the boy is vegetarian, then he may like to eat a
bowl of cooked or uncooked vegetables, while the other boy may be non-vegetarian and he
might like a large plateful of chicken and rice.

3.10 Types of needs:

The needs can be explained by bearing in mind its basic two types. All the individuals are
born with certain needs required to sustain in life, like food, water, air and accommodation.
Such needs are termed as biogenic needs. Many other types of needs also exist but these are
not inborn. Another type of needs is psychogenic. It comprises of need for position, authority,
affiliation, and so on. These needs contain the primacies of a culture, and their effect on an
individual will differ according to change in environments. Take an example of an Italian
who may be motivated to assign a big amount of his revenue to such stuff that help him to
show his uniqueness, while his Asian colleague may be working hard so as to stand in the
group. This difference shows us, how tough it is to distinguish amid needs and wants. Needs
and wants are deeply influenced by beliefs of an individual, so to differentiate them is
challenging. Contentment of biogenic needs is quite significant to marketers and consumer
research. The habits in which a consumer consumes, dress up, drink and take shelter are more
vital to marketers than the need to do so.
One more division of needs is utilitarian and hedonic. The utilitarian needs are concerned
with utility they get out of different products and services. This suggests that individuals will
concentrate on tangible and intangible features in different offerings, like mileage of a bike;
total number of calories in a sandwich and the durability of shoes. Hedonic needs are
individual dependent and they depend on an offering to meet their needs for enjoyment, self-
achievement, adventure, etc. Consumers may feel interested buying a product or service if it
offers them with both forms of benefits. Example, a young lady may buy a velvet coat
because it senses very soft against her skin, protects her from cold in winters, and provides
her a luxurious image.

3.11 Classifying consumer needs:

Classifying human needs is subject of great interest for research. Some psychologists have
conducted various researches in order to explain different types of needs that could assist in
thoroughly explaining behaviour of consumers. A psychologist named Henry Murray in one
such work recognised a set of 20 psychogenic needs that result in definite actions. These
needs contain dimensions such as autonomy, defence, and even play (i.e., engaging in
enjoyable actions).

Needs structure proposed by Murray is a base for different personality tests such as the
TAT and the EPPS. TAT means Thematic Apperception Test and EPPS stands for Edwards‘
personal personal schedule.
 P a g e | 43

In Thematic Apperception Test, individuals are exposed to four to six unclear images and
they are directed to answer following four questions regarding the images. The questions
include:
(1) What is happening?
(2) What has led up to this situation?
(3) What is being thought?
(4) What will happen?
The answers are then examined in relation to some needs and are kept in mind every time that
need is stated. The idea behind such tests are that individuals would subconsciously display
their own needs to such inducement. Researchers can create an outline about the needs of
individuals from their given answers. Murray held that all the individuals has a similar set of
basic needs, but they needs may differ in priorities in different individuals.

Particular needs and buying behaviour

Few other approaches have concentrated on precise needs and their consequences on
individuals‘ behaviour. Example, those individuals who have a strong need for success highly
value personal accomplishment. They place a premium on products and services that signify
success because these consumption items provide feedback about the realization of their
goals. These consumers are good prospects for products that provide evidence of their
achievement. One study of working women found that those who were high in achievement
motivation were more likely to choose clothing they relate with their business, and less likely
to be interested in cloths that accentuated their femininity. Other important needs that are
relevant to consumer behaviour include the following:
1. Need for affiliation (to be in the company of other people): This need is connected to
such products and services that are ‗consumed‘ in groups, such as team sports, clubs etc.
2. Need for power (to regulate one‘s environment): some consumers think that they can
regulate their surroundings through usage of many products and services like having cars
with huge engines and a good sound systems to content driver‘s musical needs.
3. Need for uniqueness (to emphasise one‘s distinct identity): Different offerings can fulfil
such need by providing distinctive qualities to customers. Take an example of Cachet
perfume that claims to be ‗as individual as you are‘.

4.12 Motivational theories:

a) Maslow‟s hierarchy of needs
This theory has been given by a psychologist named ―Abraham Maslow‖ and is considered
as one of the most appropriate theory of motivation. This theory is primarily developed to
understand an individuals‘ personal growth and the accomplishment of ―peak experiences‖.
He also proposed an order of biological and psychological needs, where drives of definite
intensities are stated. This approach states that there is an order of progress, which is
permanent – i.e., before the moving to next level a particular level must be attained. Sellers
considers this view as it identifies some definite benefits that individuals want in different
products, depending on the stage of their growth in life.
Below given figure (3.2) shows us different levels of Maslow‘s hierarchy. Individuals have
different priorities for different product benefits at each stage in relation to what a consumer
is looking for. It is very difficult for an individual to move up in the order until his/her main
concentration is on ―ultimate goals‖. But, this stage is tough to accomplish (on a steady
basis); so maximum individuals have to be contented without top experiences.
 P a g e | 44

Abraham Maslow‟s Need hierarchy pyramid (Fig. 3.2)

The suggestions of the Maslow‘s pyramid is that an individual needs to content elementary
needs before moving up to the other needs in the order (like, a poor and hungry man may not
be interested in social standing, relationships or self-actualisation). It explains that it depends
on the consumer‘s present stage, what are the choices available to him/her and what he/she is
going to value the most. In a research conducted in Romania, students were asked to name
the products and services they wish to attain. The lists comprised of not only some of the
probable products like sports cars and the up-to-date electronic gadgets, but also of some
basic products like water, soap, furniture and food.
The use of Maslow‘s hierarchy to sellers is slightly simple, particularly as to, whether the
given product or activity can content diverse needs. For example, it is very important to eat to
survive but it is also a societal deed (belongingness), a mark of social symbol, an example of
consumption of champagne, an action of love, by parents cooking for their children they can
acquire the stage of self-actualization. A house provides not only accommodation, but also
provides us with security, a place for the family to live, a prestige sign and a ground for
realising individual objectives.
Take an example of gardening fulfilling different needs at different stages of the hierarchy:
Physiological: ‗I prefer to employ in the farm.‘
Safety: ‗I find myself harmless in the kitchen garden.‘
Social: ‗I would love to share my crop yield with other people.‘
Esteem: ‗I can make something beautiful.‘
Self-actualization: ‗My apple orchard provides me a sense of harmony.‘

This need pyramid is mostly applicable in the field of marketing. It helps marketers in
understanding various needs of consumers in diverse conditions and at various phases of life,
but it does not specify a buyer‘s development in the need hierarchy. It don‘t even considers
the impact of culture on need formation. It simply offers an unclear depiction of society,
where the cultural effects are not taken into consideration.

One more problem with Maslow‘s theory is that it represents a specific culture. The
assumptions of the theory may be limited to an extremely rational Western culture. People
living in different cultures may differ with the order of the different stages as indicated. It is
possible that a spiritual being may not agree that physiological needs are essential be
 P a g e | 45

contented before self-actualisation. All the people existing in western nations don‘t appear to
live in accordance with the Maslow‘s hierarchy. A study established on visual data has
showed that spiritual existence is a better stimulus than physical existence. Likewise, several
Asian cultures rate the prosperity of people (social needs) much greater than individual needs
(i.e., self-esteem and self-actualisation needs).

b) McClelland‟s Three Needs Theory:

McClelland had identified three types of needs which motivate an individual. These needs
are:

1) Need for achievement (nACH): it is a determination of an individual to outshine in

life, to accomplish goals in relation to a set of criterions. Such a need in an individual
motivates an individual to succeed in life.

2) Need for power (nPOW): this type of need makes people to behave in a way that they
would not have behaved otherwise.

3) Need for affiliation (nAFF): this is the desire of an individual for friendly and close
relations.

Check your understanding: 2

iv) From a psychological view motivation occurs when a ______________arises that the
consumer wishes to satisfy.
v) ___________________is a conflict in which an individual faces a problem of selecting
between approaches that are equally attractive.

4.13 Summary:
Consumer motivation is the hidden force which drives the customers to satisfy their needs
and wants, whether physically or psychologically, with the purchase and use of goods and
services. Motivation process starts with the recognition of inert need, such as hunger, thirst
etc. Once the need is identified, there arises an urge to reduce it. The need is translated into
want or desire. Desire is specified with particular goal. It has often seen that some people are
more proficient in work than others. The gap in their proficiency can be related either to their
desire or readiness to accomplish a task. In addition to ability and talent, level of motivation
employees has decides their efficiency. Motivation is an internal impulse or aspiration in
employees to make them to work in the paramount abilities. The word 'motivation' has been
derived from 'motive', which expresses a need, effort, desire or urge within an individual.
Motives are subject dependent and internal as they expresses a need of a person. 'Need' is
something within an individual that impulses him/her to act. Behaviour or conduct of an
individual is very much dependent on these needs or motives. Motives provides a path to an
individual behaviour as they are directed towards some definite conscious or unconscious
'goals'. Two known types of motivation exist: Positive motivation and Negative motivation.
A positive motivation is defined as a driving force which moves an individual towards an
entity or individual or condition. Sometimes, it is also termed as person motivation. When a
driving power induces an individual to move away from some person or some entity or
object, then it is termed as a negative motivation.it has been often seen that needs are never
fully satisfied. When an old need satisfied then a new need emerges. Individuals who achieve
 P a g e | 46

their goals set a new and higher goal for themselves. These are also known as dynamics of
motivation. Consumers have many motives and there are numerous such circumstances in
which these drives get triggered. There are repeated conflicts among motives. The resolving
pattern of these conflicts sometimes disturbs consumption behaviours of consumers. In
several cases, marketer could analyse circumstances and can find out the expected result in a
motivational conflict, offer a better resolution to them, and attract the support of users
confronting such a problem. The mode in which a need is contented is influenced by people
past understandings, learnings and their ethnic environment. Choosing a specific offering to
content a need is called want. Classifying human needs is subject of great interest for
research. Some psychologists have conducted various researches in order to explain different
types of needs that could assist in thoroughly explaining behaviour of consumers. A
psychologist named Henry Murray in one such work recognised a set of 20 psychogenic
needs that result in definite actions. These needs contain dimensions such as autonomy,
defence, and even play (i.e., engaging in enjoyable actions).

3.14 Answers to Check your progress:

i) (motivation )
ii) (motives or needs)
iii) ( goals)
iv) (need)
v) (approach approach)

4.15. References:
http://en.wikipedia.org/wiki/Motivation
https://methotology.com/Motivation%20Basics.html
http://www.openlearningworld.com/olw/courses/books/Motivation%20Defined/Motivation%
20Defined/Positive%20and%20Negative%20Motivation.html
http://www.unisanet.unisa.edu.au/motivation/Pages/What%20is%20Motivation.htm
http://www.improvingyourworld.com/motivation/what_is_the_motivation_process_and_how
_can_learning_about_it_help_you_001301.html
http://www.laynetworks.com/Theories-of-Motivation.html
http://www.businessballs.com/maslow.htm
http://www.wcupa.edu/_academics/sch_cas.psy/Career_Paths/Consumer/subfield3.htm
http://www.laynetworks.com/TYPES-OF-MOTIVATION.html
http://www.laynetworks.com/motivation.html
docslide.us
catalog.flatworldknowledge.com
boyatdelhi.hubpages.com
www.slideshare.net
www.egyankosh.ac.in
www.assignmenthelp .net
www.pearsoned.ca
www.docstoc.com
www.dur.ac.uk

3.16. Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education
2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
 P a g e | 47

3. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage
Learning
5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books
6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.
7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh
Edition, 2005, McGraw-Hill Higher Education.
8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice
Hall, Third Edition

3.17 Terminal and Model questions:

Q1: define nature and types of motivation.
Q2: what are the effects of consumer motives on market place?
Q3: what is motivational conflict? Explain various types of motivational conflicts?
Q4: explain important theories of motivation.

3.18. Glossary:
 Psychology: the mental characteristics or attitude of a person
 Avoidance: keep away or refrain from
 Achievement: a thing that is achieved
 Actualisation: the state of existing in reality
 Esteem: respect or admiration
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LESSON: 4
Personality

Structure:
4.0 Objectives
4.1 Introduction
4.2 Definitions
4.3 Components of personality
4.4 Five factor model of personality
4.5 Nature
4.6 Theories
4.7 Product personality
4.8 Brand personification
4.9 personality and colour
4.10 Self and self-image
4.11 self-image
4.12 Vanity
4.13 Summary
4.14 Answers to Check your progress
4.15 References
4.16 Suggested readings
4.17 Terminal and model questions
4.18 Glossary

4.0 Objectives of this chapter:

After reading this lesson, you will be able:
 To explain the concept of personality
 To describe the concept of product personality
 To explain various theories of personality
 To enumerate the concept of self-image

4.1 Introduction:
We assess and describe the personalities of different persons living nearby us almost every
day. Common methods to assess personality is inclined to emphasise mainly on persons,
while psychologists use different ideas that can be applied on every individual to access
personality. Research in this area has resulted in development of various theories which assist
to explain why and how some personality characters grow.

Personality refers to differences in individual‘s patterns of thinking, feeling and behaving.

According to American Psychological Association, ‗‘the study of personality is based on two
broad areas viz., understanding individual‘s variation in particular characteristics of
personality like irritability or sociability while other one understands how the different parts
of an individual come together as a whole‘‘.

4.2 Definitions:
With the advent of time, various concepts regarding personality are described, but it is very
important for us to know the precise meaning of personality. Word personality has a Latin
origin of word ―persona‖, which means a use of mask by actors either to perform changed
roles or to mask their identities.
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Describing briefly, personality is blend of the distinctive patterns including behaviours,

opinions and feelings that differentiate a person from others. In addition to this, this feature
develops in an individual and stays steady during the course of the life.
 ―Personality defines individuals' characteristic patterns of thought, emotion, and
behaviour, together with the psychological mechanisms-hidden or not-behind those
patterns (Funder, D. C. 1997). This definition explains that with their colleagues in
other sub-fields of psychology, those psychologists who study personality have a
unique mandate to explain whole persons‖.
 ―According to Feist and Feist (2009), ―personality can be defined as a pattern of
relatively permanent traits and unique characteristics that give both consistency and
individuality to a person's behaviour‘‘.

4.3 Components of Personality

So, what personality of an individual is? As has defined earlier, it can be expected that
individualities in an individual and patterns of understanding and feeling makes an essential
fragment of personality. Let us discuss certain important features of personality:
 Consistency- Usually an identifiable and uniform behaviour is found in an individual.
Different persons act in similar behaviours in dissimilar situations.
 Psychological and physical constructs- some people define it as a psychological
concept, but study in the area advocates that it is inclined towards many biological
needs.
 Personality affects behaviours- it don‘t have its effects on how an individual moves
but also control the responses a person make in response to our environment; actually,
it is the basis of an individual in a definite ways.
 Multiple expressions – Behaviour of an individual can‘t be the only expression of
one‘s personality, it is reflected in moods, close relations, opinions, feelings, thoughts
and many other communal contacts.

4.4 Five Factor Model of personality:

Personality is generally divided into various components viz., conscientiousness, openness to
experiences, agreeableness, extroversion and neuroticism or emotionality, also known as
―Big Five‖. All these components are usually stable over time.

There has been various researches conducted on the topic of personality. One such research
focuses on the question that why extroverts are happier in comparison to introverts. In
response to this, the two main theories are explained, one is instrumental theory and other is
temperamental theory. The instrumental theory proposed that an extravert makes those
choices which results to positive circumstances and such people respond quite effectively to
such conditions than introverts. Temperamental theory describes the nature of extroverts
which have such a temperament that usually makes them experience a higher level of positive
affect. Lucas and Baird studied that extroversion establish no statistically significant relation
with instrumental theory but did in a way, as extraverts experience a higher degree of positive
affect.

Researchers have also worked on uncovering some of the important mediators on which
connection between extroverts and cheerfulness. Self-confidence and self-efficacy came out
as major mediators from the study. Self-efficacy is found to be associated with the
characteristics of socialness and individual well-being. It is about an individuals‘ faith in
his/her capabilities to do well for the own criterions, the ability to generate preferred
outcomes, and the sense of skill to take vital decisions in life. Nevertheless, connection amid
 P a g e | 50

subjective happiness and extroversion is moderately intervened by self-efficacy which infers

of having some additional influences that intermediate the accurate association in personality
traits and individuals happiness. Self-esteem can be another such factor which explains
individual‘s degree of confidence. Having a high degree of confidence on them will increase
their capability of having greater degrees of individual happiness and socialness.

Mood maintenance can be one more potential intermediary. It is the tendency of a person to
retain normal amount of cheerfulness on their face in different ambiguous situations i.e. a
situation which stimulates either good or bad emotions in various individuals. Research has
found that this feature is dominating in case of extroverts which implies that level of
happiness is less likely to be effected by the external happenings. It was found that
extrovert‘s positive moods last longer than those of introvert individuals.
An important question has arises, what features makes who you are? Everyone has an idea of
his/her personality, whether you are sensitive or insensitive; bubbly or reserved?
Different approaches are used to measure personality. The commonly used model for the
purpose is Big Five model, which include following traits:
 Openness
 Conscientiousness
 Extraversion
 Agreeableness
 Neuroticism

These traits are easy to remember using OCEAN cue. Big Five comprises of such
components that define every person's personality. Given below is the brief description of
each trait:
 Openness
Openness is short-hand to "openness to experiences". Individuals having this feature like
daring experiences. Such people are more eager to learn something new; recognize the value
of art, and like fresh happening. The open individual have slogan of "Variety is the spice of
life‖. The individuals having little of this feature are totally in contrast as they continue to
stick with their behaviours, stay away from new happenings and events and most likely aren't
exciting.

Alterations in personality is generally found to be a tough process, but openness trait in a

personality has shown to change during maturity. In a study that was conducted in 2011
showed, individuals taking psilocybin, or "magic mushrooms," found to act more openly and
this influence has persisted for about a year which suggests that it may be long lasting.
 Conscientiousness
Individuals who behave conscientious stay well prepared and are ready to fulfil any
responsibility. These people are generally well-organized, dependable and always focused to
their goals. These people just don‘t jet off on journey with a bag; they plan for everything in
advance. They are also called real planners.
Individuals lacking in conscientiousness are highly freewheeling and impulsive and may
inclined towards carelessness. This feature is found to be one of the helpful traits one should
have, as it is correlated with achievements obtained in working place and educational
institutions.
 Extraversion
Extraversion vs. introversion is probably the widely used personality attributes included in
Big Five model. If an individual is more extraverted, there are more chances of him/her to be
a social butterfly.
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Extraverts are mostly friendly, outgoing, chatty and attracts maximum attention in masses.
They have a tendency of being more confident and happy in their communal dealings.
Introverts on the other hand like to spend time alone, possibly as their intellect process
societal communication otherwise. Introverts are frequently confused with shy people as
shyness entails a fright of societal relations or incapability of individuals to actively
participate in society. They behave pleasantly at celebrations where they like to be alone or
like to indulge in small-group events.
 Agreeableness
Agreeableness ascertains the degree of anyone‘s kindness and warmth. More the friendly
person is, more trustful, helpful and compassionate they behave, while disagreeable
individuals are generally unemotional and doubtful of others, and usually cooperate less.
Men‘s agreeableness is generally judged by women on the basis of their dancing ability, more
high the body movement, better personality it will signal. Disagreeable men mostly earn
more than agreeable men at workplace. On the other hand, disagreeable women does not
show the similar salary benefits which suggests that no-nonsense character is exceptionally
beneficial to men.
 Neuroticism
People which have high neuroticism get worried often and easily descend into depression and
anxiety. Neurotic people are more inclined to find things to worry about. On the other hand,
people having little neuroticism are more balanced emotionally. Neuroticism has adverse
effects on health and it was found that these people die in younger age because they get
addicted to tobacco and alcohol to relieve their anxiety, as compared to the emotionally
stable, less neurotic person. One of the study that was conducted in 2012 found that whenever
people with neurotic personality trait get waiver or increase in their salaries, this rise in salary
may not make them happy.
Activity: 1
Do you think, Big five model helps in identifying the personality of an individual? Explain in
your own words:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______________
4.5 Nature of personality:

Following three points define the nature of personality:

1) Personality imitates individual differences: Personality is the combination of different
factors individual possess. Two individuals cannot be exactly same, although they can
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share some personality characteristics which are same. For example, every individual
can be dissimilar in having high and low patience level.
2) Personality is consistent and enduring.
3) Personality can change.

Check your understanding: 1

i) Personality refers to differences in individual‘s patterns of ______________,
____________________and behaviour.
ii) . The personality word comes from the Latin word _______________, which referred to a
theatrical mask work by performers in order to either project different roles or disguise their
identities.
iii) Individuals who behave________________ are well organized and have a strong sense
for any duty.

4.6 Theories of Personality:

1) Freudian theory:

This theory by Sigmund Freud‘s is the keystone of present day psychology. It is also
known as psychoanalytic theory. Theory is based on the idea of unconscious needs, mainly
sensual and living drives present in an individual. Three main drives have been discussed
in this theory which include Id, Superego, and Ego.

 Id acts as a ―storehouse‖ for ancient and spontaneous drives, which include hunger,
need for water and sex. People look for instant fulfilment of these needs without any
definite ways of fulfilment.
 Superego is defined as the person‘s inner sense of conveying to the society‘s ethical as
well as moral behaviour. The superego‘s part is to find whether people are satisfying
needs according to communally suitable manner. The superego acts as ―brake‖ to control
and reduce the thoughtless forces included in id.
 Ego refers to person‘s aware control over tasks that aim to bring stability in the
impulsive loads of the id and the socio-cultural limitations of the superego. It can act as
an internal monitor.

Freud highlight‘s that the personality of individual is shaped when he/she passes through
distinct stages of development of infant and childhood levels. These stages include: oral,
anal, phallic, latent, and genital stages. Any person‘s personality is defined by how well is
the dealing with the ongoing crises which he or she experienced while going through
different stages of development.

Who was Sigmund Freud (1856-1939)

From the middle of the 19th century, psychology emerged as one of the self-regulating
scientific discipline in Germany and was defined as the study of consciousness in the
normal, adult human being. Sigmund Freud attacked the traditional psychology as he think
mind as an iceberg which show the smaller part over the surface of the water symbolize
the area of consciousness while the area with much larger mass under the water represent
the region of unconsciousness. Freud believed that the unconscious domain includes
passions, urges, the reserved feelings and ideas, huge hidden forces which can implement
and control the conscious views and deeds of the individual.
 P a g e | 53

The main aim of Freud‘s life was to ―agitate the sleep of mankind‖. In 1856 in Moravia,
Freud was born. Until 1881, he attended the University of Vienna‘s medical school for 8
years. His interest was in neurology which originated his specialisation in nervous
ailments treatment. He studied hypnosis in the guidance of French doctor of psychiatry
Jean-Martin Charcot for one year and tried hypnosis on his patients but got no success, so
adopted a new method of treatment formulated by a Viennese physician - Joseph Breuer.
In this method, patients were treated of their symptoms just by having a conversation
regarding them. After some time, he used the method ―use of free association‖ by allowing
ill people to speak anything that exist in their minds. A patient getting treated in the
similar way named this treatment as ―talking cure‖. Freud explored the method of free
association based on the unconsciousness and developed the first comprehensive theory on
personality and became extremely influential and extremely controversial.
Structure of mind: Freud‟s ID, and super ego:
Freud defined personality which possesses three different aspects as mentioned above. All
three worked together to generate a complex behaviour defined by the Id, the ego and the
superego. Both ego and superego plays important role in conscious, preconscious and
unconscious behaviours, but unconscious is the main field to Id and contain bulky part of
Superego.
The ID (“It”): It works completely by unconscious manner and comprises of irrational
and emotional part of the mind. It was found that when a baby is born, his/her mind is
totally Id. The Id is the basic mind that encompasses all the elementary feelings and needs
one have. It is based on a single rule i.e. the ―pleasure principle‖: which means ―I want it
and I want it all at the moment‖.
The ego: (“I”): It works at all stages of aware mind and can be termed as rational
component of mind. It growth is due to consciousness which says ―you can‘t always get
what you wish for‖. It involves dealing with the actual world and work well on ―reality
principle‖. It understands ones‘ necessity for negotiation. Currently some personality
based psychologists assumes that the most significant functions of the ego is formation of
compromises. Ego receives some valuable drive distant from id for further thinking,
controlling, planning the id and gets the desires the Id needs which are very rational. The
ego denies the instant satisfaction but assistances the Id to acquire what they desire.
The super ego (“Over-I”): It has important role at all the three stages and can be
described as the ethical portion of the brain. The procedure for the identification by the
child begins, generally with his/her parents or someone he/she loves or admires. The
superego expresses parent and social morals. It processes and implements instructions. It
has authority to impose rules which originates from its capability to generate nervousness
and continuously struggle to achieve excellence. The superego consists of couple of sub
constituents i.e. ego ideal and conscience. The ego ideal offer rules for high-quality
behaviour, and values of excellence towards which the ego can strive. In other words, ego
ideal is expressed as what the father and mother of kid would approve. The conscience is
about the guidelines regarding what represent evil conduct. It includes things on which a
small kid feels mom or dad will reject.
The Superego:
1. To totally reduce those Id urges that are felt to be wrong.
2. To get hold of Ego to perform ethically and not just judiciously.
3. Tries to formulate the person to behave in an ideal manner.

Freud held that there should be equilibrium between all the forces i.e.
 Id too strong = bound up in self-satisfaction and heartless to others.
 P a g e | 54

 Superego too strong = feels guilty whole of the time and may possess
unbearably pious personality.
 Ego too strong = tremendously rational and well-organized as well as boring,
cold and distant.
All the 3 mechanisms should be stable which further leads to better extent of spiritual
drive and equitable spiritual health.

2) Neo Freudian personality theory:

Many of the Freud‘s colleagues opposed his idea that personality is mainly sexual and
instinctual in nature. They argued that the fundamental part of the personality
development is social relations.

Alfred Adler emphasised the individual‘s hard work to rise above the feelings of
inferiority and search many sensible goals, that he named style of life.
Harry Stack Sullivan studied, individuals are constantly try to form important and
worthwhile associations, stressing on struggles to reduce the stress.

Karen Horney worked on individual‘s wish to overcome the feelings of anxiety and their
impacts on child-parent relationships. She explained and projected three personality sets
i.e. compliant, aggressive, and detached.

Compliant personalities are those who like to move to others and have great wish to be
valued, sought, and respected by others.

Aggressive individuals mostly move in the other direction to other individuals and wish
to shine and win appreciation.

Detached individuals are those who move away from other and desire self-sufficiency,
independent life and freedom from responsibilities.

Based on above three groups, a personality test (the CAD) has been tested and developed
which disclose a number of tentative associations between product and scores and brand
also their usage patterns. Neo- Freudian theories has been used by many marketers
intuitively.

3) Trait theory:
Trait theory is found to be the noteworthy departure from the typical Freudian and Neo-
Freudian theory which are based on qualitative measures. It is mainly based on
quantitative or experimental results, which focus on the specific emotional characteristics
called traits as the measurement of personality. Trait can be defined as any unique, quite
stable way on the basis of which one individual differs from another.

Various tests are employed to study consumer behaviour which includes one of the
increasingly studied test i.e. single-trait personality tests.

Different traits are:

 Consumer innovativeness describes approaching an individual adds to experiences.
 Consumer materialism explains level a consumer has connection to ―worldly
possessions.‖
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 Consumer ethnocentrism illustrates an individual‘s likelihood to agree to take or

reject foreign-based goods.
Scholars have gained enough experience to attach personality to how customers express
their selections, and make their mind for buying of a wide-ranging products and not a
particular brand.

Personality vs. Consumer Diversity

Marketer‘s main concern is to know, in what way personality influence consumer
behaviour as such information helps to know consumers in a superior way and to target
and fragment persons who probably respond positively to products and services they
offer.

Consumer Innovativeness and Related Personality Traits

Selling specialists try their best in getting all the information regarding consumer
innovators which are those individuals who are most expected to try their products.
Consumer visionaries are the essential factors for the accomplishment of product
launched in markets.
Personality qualities are quite effective in differentiating among innovators and non-
innovators.

Personality traits include:

 Consumer innovativeness
It defines how much consumers are interested in a new offerings, practices, or services
Currently, consumer research have showed a constructive and encouraging association
between Internet and online buying.

 Dogmatism:
It is a behavioural feature that defines the amount of severity and inflexibility an
individual shows in response to unfamiliar product and also toward information which is
different as compared to their established beliefs. Consumers which possess low
dogmatism probably prefer innovative products to established ones while with high
dogmatism customers are more towards accepting of authority-based ads for new
products.

 Social character:
Social character is a trait that ranges on a scale from inner-directed to other-directed.
Inner-directed consumers are the ones which are dependent on their own ―inner‖ morals
or standards for evaluation of novel offerings, they are called innovators. They mostly
favour those advertisements which stress on product characteristics and particular
benefits. Other-directed customers are found to be dependent on others for making
decisions and act as non-innovators. They generally prefer ads which feature attributes
towards societal approval and settings.

 Need for uniqueness:

These people mostly avoid traditionalism are the ones who seek to be unique in every
way.

 Optimum stimulation level:

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Several people desire a uncluttered, simple, and calm life, while some prefer their
surroundings overflowing with new, difficult, and extraordinary experiences. Persons
which possess optimum stimulation levels i.e. OSLs are always eager to take risks, to be
novel, to try new commodities, to find out purchase-related information, and to accept
new trade facilities. The connection between OSL of an individual and their real
conditions has a direct correlation to the amount of enthusiasm individual‘s want. If two
are found to be equivalent, individuals likely to be satisfied and fulfilled and If found
bore, they are need to be stimulated, and vice versa.

 Variety-novelty seeking:
This is same as OSL (optimum stimulation levels). Main types are diversity or originality
seeking and many are variety seeking i.e. exploratory purchase behaviour which include
switching brands to get new and probably improved alternatives; vicarious exploration in
which the customer protect information about different and novel option and then think
over it or daydreams regarding the alternative; and use innovativeness where the client
utilize a previously accepted manufactured goods in an innovative or novel way. Use-
innovativeness is particularly more applicable to technology. Customers who are having
high variety seeking scores may also get fascinated to various brands that claim to be
more innovative and possess numerous uses or applications.
Marketers may get benefited from having the idea of offering extra alternatives to the
consumers which are seeking more of product variety. By this way, marketers should
walk the fine line amongst contributing consumers too small with too many options. In
terms of personality orientation, researchers observed that the innovator consumers vary
from the non-innovator consumers.

Cognitive personality factors:

Researchers always in a mind to understand how cognitive personality effects consumer
behaviour on market. Two main types of cognitive personality behaviour have found to
be helpful in understanding the important features of customer behaviour which includes:
a) Need for cognition.
b) Visualizers versus verbalizers.

Activity: 2
Explain Trait theory in real life taking some example:
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4.7 Product personality:

It seems that customers generally remain inclined to assign different expressive ―personality-
like‖ traits or characteristics which are the elements of brand personalities to varied brands in
a broad diversity of product groups.
A brand‘s behaviour can moreover be functional i.e. ―provides safety‖ or can be symbolic i.e.
―the athlete in all of us‖.

4.8 Brand personification:

Brand personification recasts customer‘s awareness of the quality of a product or service into
the form of a ―human like character.‖
It appears that consumers can convey their innermost opinions regarding the brands or
products in terms of association with a recognized personality. For market success,
identifying consumer‘s present brand-personality connection or generating one for new
products are important and significant tasks. To define the dimensions of the brand‘s
personality, five traits including excitement, competence, sincerity, sophistication, and
ruggedness, and fifteen sides or facets of personality that come out of the five dimensions
like down-to-earth, daring, reliability, upper class, and outdoors.

4.9 Personality and colour:

Generally consumers associate different personality features with a particular colour code. In
many cases, various goods and even brands are associated with a specific colour as with
personality traits. It was found that blue colour is used to attract male consumers particularly.
Yellow is linked to ―novelty,‖ while black is for ―sophistication.‖ Several fast food
restaurants employ a mixture of intense and bright colours like red, yellow and blue for their
roadside signs and inside designing. These colours are related with fast servicing and low-
cost or cheap food. Moreover, fine dining eating places mainly use sophisticated or stylish
colour codes like white, gray, shades of tan, pale or muted colours to imitate fine leisurely
and gentle servicing. Consumer‘s liking or disliking for different colours vary from country
to country.

4.10 Self and self-image:

In an individual, self-image or ―perceptions of self‖ are same and closely associated with the
personality which tend them to purchase products and use services. They also support
vendors with such images or ―personalities‖ that strongly correspond to their own self-
images. Such concepts defining an individual as one or multiple selves, self-image, and the
notion of the complete self are generally explored by researchers who works on consumer
behaviour

4.11 Self-image:
The customer‘s self-concept plays an important and significant part in forecasting and
defining a particular behaviour. Consumers act as manifold selves and can reflect the
different part they play in their day to day life. Multiple selves also act as role identities
according to many social psychologists. Taking an example of a typical college student, in
the outside of the classroom, he/she has to act in many characters like as daughter or son,
sister or brother, sorority or fraternity member, class leader for a project, lover, friend, athlete
and many more. Every identity is found to be different and results in diverse set of buying
requirements and purchase motivations.
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Role identities have shown a huge effect on open market behaviour. Self-concept is found to
be more complicated as compared to role identities, which not only encompass the functions
where customers perceive themselves but also explores how customers feel when they are
observed by others in each of these roles. When we do purchasing of any product, we just not
consider how the product go well with our image of ourselves but we also believed that what
can be the response of others to us once we purchase, possess, and utilize that product. This
method of meditative assessment helps clients to find out how they will be revealed in front
of others and thereby form a social self-i.e. how they suppose to build an image of their
selves as others observe them.
What is self-image? It is a composition of ideas and beliefs which are related to one self.
Self-image is defined as a association between customers and the products they used. For
example, if someone owns a sports car, some consumers find themselves as outgoing and
attractive while others may see themselves as wealthy and reckless. Four main types of self-
image are actual self, social self, ideal self and ideal social self and these are found to play an
important role in studying consumer‘s behaviour. Literature survey found some other forms
of self-image including extended self, situational self, expected self, possible self, and
interdependent self; . The four popular forms of self-image i.e. actual, ideal, social, and ideal
social are discussed below.
Forms of Self-Image

Actual Self
According to psychologists, actual self-image is also known as ―private self‖. It includes
those images that one has of oneself regarding which they feel highly protective. For
example; the person may say ―This is who I am‖ or in other way ―this is not how others think
of me.‖
Actual self-image defines the personal identity of consumers how they see themselves. For
example, there can be a particular consumer image regarding sports car, consumers can think
about the person who drives it as attractive, outgoing, or even sexy.
Do targeted clients see themselves in this light? If yes, that defines their actual self-image.
Maybe, they can found themselves less attractive, reserved and not even sexy, then, that
imitate their real self-image.
Additionally, actual self-image display that individuals are encouraged to defend their private
individuality and they experience uncomfortableness if they found themselves undertaking
those things which can not reflect their true selves. Actual self-image is a self-stability motive
which compels people to behave in ways that are according to their actual self-images.
Ideal Self
Ideal self-image is also a part of the private self. It reflects how consumers would like to be.
An individual might see himself/herself as an anxious and low in confidence i.e. his/her
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actual self-image, however he/she might not like this self-observation. He/she may desire to
turn into more receptive but self-confident i.e. his/her ideal self-image. Inconsistency is
always there in between ideal and actual self.
The ideal-self encourage behaviour through self-admiration motive what psychologists says.
People possess dissimilar ideal images of themselves, and also recognize these images by the
achievement of goods that are generally coupled with them and boost their self-esteem. That
means, selling and using a manufactured product which possess consistent image with
consumer‘s, here ideal self-image help them to sense good regarding themselves.
Social Self
Social self-image is related to the public self which explain how we trust individuals they
imagine about us and how we wish for people to feel about us. Social self-image reveals how
customers hope others observe them. An individual may suppose that others see him/her as
reserved and simple and this type of image might be reliable or incompatible with the ideal or
actual self. Social self-image reflects behaviour through communal stability motive. People
are generally stimulated to be a perfect image others encompass of them. The feeling get
uncomfortable for them if they perform in way contradictory to how they supposed others see
them.
Ideal Social Self
Ideal social self-image reveals how consumers wanted themselves to be observed by others.
Purchaser of a sports car might desire to be perceived as attractive, sociable, and sexy by
others, this forms their ideal social self-image. This ideal social self-image influence
individual‘s behaviour by social approval motive. People are encouraged and enthused to
perform the things that made others to imagine positive for them. When working in such a
way which can recognize the ideal social self-image and tend to receive consent from others.
Activities which are unpredictable with the ideal social self-image direct to disapproval by
the society, hence, people possibly act constantly with their ideal social self-images to
achieve affirmative feedback from others which are very important.
Considering the following statistics, a married man who is aged in range of 35 to 54 having
no kids are 130% probably buy hair colour to cover their grey as compared to other men. So
what is going on here? In this category of demography, why men get more stimulated as
compared to men in other categories to wrap their grey hair with hair colour? Possibly, a man
who seems to be more manly and more like a spouse than a father define their ideal social
self-image. So, the grey hair is out as the ideal social self-image is of a good-looking
attractive man with childish looks.
The extended self:
Consumer‘s possessions might be observed to ―confirm‖ or to ―extend‖ their self-images and
proposed that to a great extent human emotions can be linked to esteemed goods. Personal
assets may expand the self in different ways: In reality, to allow any individual to perform
that things which may be extremely complicated or unfeasible to get done (e.g., using a
computer system for problem-solving); Symbolically, by making an individual sense better or
―bigger‖ (e.g., receiving an employee award for excellence); By granting position or a title
(e.g., status among collectors of rare works of art because of the ownership of a particular
masterpiece). Imparting everlasting feelings by leaving behind valued property to juvenile
members of the family (this also has the power of extending the recipients‘ ―selves‖). By
providing something with magical powers (e.g., a cameo pin of one‘s aunt may be supposed
as a magic charm leading to good luck when worn).

4.12 Vanity:
Vanity is a term used to describe excessive superiority or respect of one's own appearance or
accomplishments. The theoretical definition of vanity elucidates exhibitionism, dominance
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and achievement of self-goals. It implies that individuals engage to emphasize their self-
concept, accomplishment and appearance perception by altering social perceptions,
purchasing decisions and consumer‘s choices.
Vanity is a psychogenic feature of people and is mainly influenced by prevailing financial
and social inclinations. In modern world, personal image and identity of an individual mainly
depends upon materialistic accomplishments. The continuous repeated marketing
advertisements showing physical beauty, sensual imagery and materialistic accomplishment
have led grounds for entrepreneurial society. Marketers have developed such a culture in
society that buyers are busy in purchasing goods and services that fulfil their sensorial motive
rather than utilitarian motive. Therefore van being is prone to purchase such goods and
services, which promises them independence, grace, power and accomplishment provided
that substantial benefits. This behaviour is more apparent in clothing, beauty, beverages,
cosmetics, medical, electronic devices, theatre and sporting categories.
Accomplishment and appearance is a sort of token of happiness for people residing in
developed and developing countries. Shoppers in developing countries board on journey to
resemble with western lifestyle and culture. Van beings continuously search for up-to-date
products and services endorsed by superstars that serve them to fulfil their need for attention
and perfection.

Check your understanding: 2

iv) People which have high neuroticism get worried often and easily descend into
________________________, _________________.
v) ________________________ is based on the idea of unconscious needs or drives, mainly
sexual and biological drives, found to be heart of human enthusiasm and personality.
4.13 Summary:
We assess and describe the personalities of different people around us almost every day.
Our common methods of personality assessment tend to focus mainly on individuals,
while personality psychologists use conceptions of personality that can be applied to
everyone. Personality refers to differences in individual‘s patterns of thinking, feeling
and behaving. Different theories of personality are described, but the first step is to know
exactly what term personality means. The personality word comes from the Latin word
―persona‖, which referred to a theatrical mask work by performers in order to either
project different roles or disguise their identities. Some of the fundamental features of
personality includes: consistency, behaviour and actions, multiple expressions etc.
Personality is generally divided into various components viz., conscientiousness,
openness to experiences, agreeableness, extroversion and neuroticism or emotionality,
also known as ―Big Five‖. All these components are usually stable over time, and to
person‘s genetics about half of the variance appears to be attributable rather than the
effects of its environment. Various theories of personality has also been presented by
various psychologists such as Freudian, neo Freudian and trait theories. Researchers
always in a mind to understand how cognitive personality effects consumer behaviour on
market. Two main types of cognitive personality behaviour have found to be helpful in
understanding the important features of customer behaviour which includes: Need for
cognition, Visualizers versus verbalizers. The customer‘s self-concept plays an
important and significant part in forecasting and defining a particular behaviour. Vanity
is a term used to describe excessive superiority or respect of one's own appearance or
accomplishments. The theoretical definition of vanity elucidates exhibitionism,
dominance and achievement of self-goals. It implies that individuals engage to
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emphasize their self-concept, accomplishment and appearance perception by altering

social perceptions, purchasing decisions and consumer‘s choices.

4.14. Answers to check your progress:

i) (thinking, feeling)
ii) persona
iii) (conscientious)
iv) (depression and anxiety.)
v) (Freudian theory)

4.15. References:
Solomon, M. R. (December 1983), ―The Role of Products as Social Stimuli: A Symbolic
Interactionism Perspective,‖ Journal of Consumer Research, 10, 319–29; Reed, A., II
(September 2004), ―Activating the Self-Importance of Consumer Selves: Exploring Identity
Salience Effects on Judgments,‖ Journal of Consumer Research, 31, 286–94.
Sirgy, M. J. (December 1982), ―Self-Concept in Consumer Behaviour: A Critical Review,‖
Journal of Consumer Research, 9, 287–300.
Belk, R. W. (September 1988), ―Possessions and the Extended Self,‖ Journal of Consumer
Research, 15, 139–68.
Sirgy, M. J. (December 1982), ―Self-Concept in Consumer Behaviour: A Critical Review,‖
Journal of Consumer Research, 9, 287–300.
Sirgy, M. J. (December 1982), ―Self-Concept in Consumer Behaviour: A Critical Review,‖
Journal of Consumer Research, 9, 287–300.
Morgan, A. J. (1993), ―The Evolving Self in Consumer Behaviour: Exploring Possible
Selves,‖ in McAlister, L. and Rothschild, M. L., eds., Advances in Consumer Research, Vol.
20. Association for Consumer Research: Provo, UT, 311–18.
Triandis, H. C. (1989), ―The Self and Social Behaviour in Differing Cultural Contexts,‖
Psychological Review, 96(3), 506–20; Markus, H. and Kitayama, S. (1991), ―Culture and the
Self: Implications for Cognition, Emotion, and Motivation,‖ Psychological Review, 98, 224–
53; Mandel, N. (2003), ―Shifting Selves and Decision Making: The Effects of Self-construal
Priming on Consumer Risk-taking,‖ Journal of Consumer Research, 30, 30–40; Aaker, J. L.
and Lee, A. Y. (June 2001), ―‗I‘ Seek Pleasure and ‗We‘ Avoid Pains: The Role of Self-
regulatory Goals in Information Processing and Persuasion,‖ Journal of Consumer Research,
28, 33–49.
Sirgy, M. J. (1986), Self-Congruity: Towards a Theory of Personality and Cybernetics.
Praeger Publishers: New York; Liu, S-X., Lu, Y-X., Liang, Q-P., and Wei, E-Y. (2010),
―Moderating Effect of Cultural Values on Decision Making of Gift-giving from a Perspective
of Self-Congruity Theory: An Empirical Study from a Chinese Context,‖ Journal of
Consumer Marketing, 27(7), 604–20.
Sirgy, M. J. (1986), Self-Congruity: Towards a Theory of Personality and Cybernetics.
Praeger Publishers: New York; Ibrahim, H. and Najjar, F. (2008), ―Assessing the Effects of
Self-congruity, Attitudes and Customer Satisfaction on Customer Behavioural Intentions in a
Retail Environment,‖ Marketing Intelligence & Planning, 26(2), 207–24.

4.16. Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education
2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning
4. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books
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6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.

7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.
8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

4.17. Modern and terminal questions:

Q1: explain the concept of personality in detail.
Q2: explain the Big Five model of personality in detail.
Q3: explain various theories of personality.
Q4: explain the concept of self-image in detail.

4.18 Glossary:
 Temperament: a person‘s nature with regard to the effect it has on the behaviour
 Extroversion: socially confident person
 Ego: a person‘s sense of esteem or self-importance
 Trait: distinguishing quality or characteristic
 Dogmatism: inclined to assert principles or opinions as incontrovertibly true
 Cognitive: mental action or process of acquiring knowledge through thought,
experience and the senses
 Image: a point or set formed by mapping from another point or set
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LESSON: 5
Reference Groups

Structure:
5.0 Objectives
5.1 Introduction
5.2 Categories of social class
5.3 Measurement of social class
5.4 Problems with social class segmentation
5.5 Applications of social class
5.6 Summary
5.7 Answers to check your progress
5.8 References
5.9 Suggested readings
5.10 Model and terminal questions
5.11 Glossary

5.0 Objectives:
After reading this lesson, you will be able to:
 Explain the concept of social class
 List various categories in social class
 List the problems with social class segmentation
 Discuss the applications of social class

5.1 Introduction:
Most of the societies possess social-class hierarchy that provide higher status to some classes
of people than others. These classes composed of specific identifiable groups of persons
whose lifestyles and behaviours are different from members of the other classes. Members
belonging to a specific or particular social class generally share same behaviour patterns and
moral values. It can be noted that social classes are not like formal groups having strong
identity but they possess loose compilation of individuals with similar life experiences.
Various societies observe these differences as an important part because they recognize that
everyone in a class has an essential role to play in order to work and function smoothly for
society. However, some jobs like executives and medical doctors are found to be more
esteemed and prestigious and are more valued than jobs of toll taker or janitors. Yet, the idea
of social class is not inherently negative and pessimistic. Still with many inequalities, social-
class features can help every individual to determine what their role in society is and what
they would like it to be or what are their objectives to achieve. In addition to all, every level
in social-class hierarchy build an important contribution to society.

Social class shows a major influence on customer‘s behaviour and their purchasing habits.
Social class can measure an external influence on buyer‘s behaviour as it is not a function of
knowledge or feelings. Usually, people are grouped in social classes or status according to
their wealth or income, education, type of occupation and so on. Possibly there is a simplest
model which can be employed to define social class as a three-tiered approach that consist of
the rich, the middle class, and the poor. Many other models have defined it as many as in
dozen levels. Individuals described in the same social class likely to have alike attitudes, live
in same neighbourhoods, dress alike, and can shop at the same kind of stores.
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Influence on Consumer Behaviour

Social class can show deep effect on buyer‘s spending habits, the most noticeable effect is the
level of non-refundable earnings of each social class. Generally, the rich have the great
capability to buy more consumer goods with high quality than those with less income. There
always found dissimilarity in the variety of goods purchased. For example, the upper class
individuals are likely to be the main purchaser of fine jewellery often at exclusive retailers
while the lower class people are more focused on their necessities.

Effects on Marketing
Marketers always remain alert or aware of the social class of their target market, and also
need to understand the dynamic of the different social classes. If a marketer desires to target
efforts for upper classes, then it should be designed in order to meet their expectations in
terms of service, quality and atmosphere. For example, the upper-middle types of social class
are future-oriented people and generally ambitious who are economically successful and now
want to raise their quality of life. Material goods often meant to be a major symbolic thing for
this type of group and effective marketers will understand it well and capable to tailor their
approach accordingly.

5.2 Categories of social class:

a. The upper class: the corporate rich

It mostly represents the upper class of the United States, including individuals which are very
wealthy and in the top level of corporate or business class of America. It constitutes about
0.1% of all families in the United States and the list of such families is published in Fortune
Magazine every April. It includes some old families such as, The Rockefellers, The DuPonts,
The Hunts and so on, while some others include new ones such as Bill Gates. Forbes
Magazine web site also publishes comparative list of the world's all-time wealthiest people.

Other than great wealth, cultural capital is also required to automatically qualify as the
member of the upper class. For example Michael Jackson does not belong to upper class but
Tiger Woods might as he has cultural as well as economic capital required for membership.
By membership in elite and exclusive social clubs and listings in the social register such as
the Denver Club in Denver and similar clubs in New York, Boston, San Francisco and
Philadelphia, the wealthy families maintain their links among one another. E. Digby Baltzell
discussed about their social interests and business in these perspective without fear of it
reaching into the hands of the community.

Many of these families get involved in politics too, but not directly although some families
does such as The Rockefeller family which includes governors of Virginia, Arkansas and
New York. In conclusion, the upper class is a special and private group mostly get married
and socialized entirely within its own groups. They inhabit high positions of power in the
corporations and business board rooms of America and get actively involved directly or
indirectly in politics.

b. The upper middle class: professional / managerial

Upper middle class mostly consists of physicians, lawyers, top level engineers, top
management of medium and large corporations, some college university professors and
others whose profession depend on higher education.
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This class is characterized by a single word 'doing'. It includes people where some have gone
to public schools, moderately elite colleges and universities which can be prestigious public
universities. Some have constituted mainly in private secondary schools, specific Ivy League
or private colleges and universities. During this, they met the children belonging to upper
class. They together learn how to 'govern,' how to run big economic enterprises and how to
characterize the welfare of the upper class in the governing and board rooms of America. The
upper middle class take out the mandate of the upper class and also supports them in different
ways. It might provide them with cultural capital, which is linked with education. Though,
the interests or happiness of the upper class may possibly clash with those of the upper
middle class at certain times.

c. The lower-middle class: clerical / sales

These are also known as the 'white collar' lower middle class management type people. They
are found to be a ―solid middle class‖. It includes individuals with occupations like those of
teachers, lower level management and many more. Their education is often less and is limited
to state colleges and universities, probably community colleges.

The members of this class constitute mostly contemporary western societies, which do most
of the society works and run low level sectors or divisions of any organizations. Lower-
Middle class people are often conservative, traditional, spiritual and are very active in their
religious communities. At present this group act as a mixed bag consisting of the family
farmers and small business owners. These types of people often feel threatened or in danger
by the mild changes in the society and by large government and business corporations.

d. The working class: skilled and unskilled

This includes working class of skilled or unskilled people, and found to be a backbone of
America. These people are those who manufacture the goods that we all consume or use.
They can be truck drivers who transport the goods to us, fire fighters who keep it cool and the
policeman who maintain order of any place. This class includes those individuals which have
minimal skills.

They are often with very little formal education. It includes people residing at the cities of the
upper Ohio Valley in Ohio, the manufacturing communities of Michigan, Illinois, Wisconsin,
and Indiana. These types of families are also present in the towns of Virginia and
Pennsylvania including steel workers and coal miners. Children belonging to this class found
it difficult to follow their parent‘s footsteps, due to less than a high school education. It
becomes difficult for them to have well-paying jobs and remain incapable to support their
families as their parents did.

e. The lower class: the poor / an underclass?

They are seen as an underclass or poor people, a group that remain everlastingly
underprivileged, deprived of good education and a good job. There is a very fine line between
people of this group and other groups. Sometimes if there is any type of financial recession,
major medical crisis or unemployment, people belonging to upper class and middle class can
fall to this group.

The members of this class have little formal education and few of them have any marketable
skills and profitable jobs. Their existence lies from hand to mouth, day-to-day. Many of them
have to deal with certain mental and physical health problems. Marriage and parenthood
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comes early. Poverty or near poverty is a basic standard condition of life for the members
lower class.

This class generally face difficulty when dealing with any single feature of their lives and are
doomed to failure. For example, it is often found that all that needed for this class is to join
any steady job and for that cultural capital, e.g. a better education is required. To achieve any
of them get hindered by their serious health problems that divert their mind from focusing on
study or working steadily.
Activity: 1
How is social class divided in your area? How are marketers trying to target them with their
offerings? Support your response with examples.
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5.3 Measurement of social class:

It has been proved that social class is difficult to measure as it is a complex or complicated
model dependent on a number of factors. Earlier different measures like the Index of Status
Characteristics developed in the 1940s and Hollingshead developed the Index of Social
Position in the 1950s were employed to measure social class. These all indices applied with
different blend of individual characteristic features like income, type of housing, to get a tag
of class standing. The precision of these composites is still an issue of discussion between
researchers; one of the recent researches have suggested that for raw education, segmentation
purposes and income measures work as well as composite status measures. Blue-collar
workers having comparatively high-income jobs are still inclined to observe themselves as
working class, yet their earnings can be comparable to those of white-collar workers. This
fact strengthen the thought that both the labels ‗working class‘ or ‗middle class‘ are very
subjective and biased. They depict more about self-identification as they do for economic
well-being.

5.3.1 Problems with measures of social class

Researchers working on market were found to be the one who propose that individuals from
different social classes are distinguished from others in diverse manner. Sadly, several
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measures are poorly dated and are not as applicable for today due to variety of reasons, as
discussed below:

Most of the measures were planned to accommodate the traditional and conventional nuclear
family, having female full-time homemaker and only male salary earner in the centre of his
career. These measures have difficulty in accounting for young singles living alone; two-
income families or households headed by a female which is more common in present day
society.
One more problem is rising vagueness and uncertainty of our society that make measuring of
social class difficult. Previous study was generally based on the reputational method, in
which wide and extensive interviewing/discussion was done in a community to find out the
status and background of an individual. Further, this information, when coupled with the
tracing of communication pattern between people, offer a very inclusive idea of social
standing in a community. But presently this method of measuring social class is practically
unfeasible to execute in most of the communities. One compromise is to question or
interview the persons in order to get demographic information and to merge that data with the
subjective impressions of the interviewer about the individual possessions/assets and standard
of living.
It can be noted that accuracy and precision of any survey is mostly dependent on the
interviewer‘s judgement, especially about the class of the respondent‘s neighbourhood. These
types of impressions stay in danger of being subjective by the interviewer‘s own conditions,
which might influence his or her standard of evaluation. This possible difficulty point out the
requirement for sufficient training of interviewers, as well as for several efforts to be taken to
cross-validate such data or information, probably by utilizing several judges to rate the
similar area.
One of the main problems about assigning of individuals to different social classes is that
they might not be identical in their standing on all of the applicable dimensions. A person
may be from a low-status cultural group but with high-status job, while another live in a
fashionable part of the town and have not completed secondary school education. The idea of
“status crystallization” was developed to measure the influence of inconsistency on the
social and personal behaviour. It was considered that the rewards from each part of such an
‗unbalanced‘ individual‘s life would be unpredictable and impulsive, stress or anxiety would
result. People who display such discrepancies get liable to be more receptive or open to social
change than others whose identities are more powerfully rooted. The same problem may
occur when a social class standing of an individual creates expectations and hopes that are
not met.
Many people discover themselves in an unhappy and miserable manner for increasing wealth
than is expected of those in their social class. This state is called as an over privileged or
honourable condition and is generally explained as an earnings that is at almost 25–30 %
over the average for one‘s class. Similarly, underprivileged or poor consumers, who make
at least 15% less than the average, must often dedicate their utilization priorities to sacrificing
in order to maintain the look of living up to class potential. Example for over privileged class
is lottery winners who become wealthy overnight.

Customers having some standard of living and level of expectations can have trouble in
acclimatizing to abrupt prosperity and get engaged in showy and careless display of wealth.
Paradoxically, it very usual that lottery winners get into the feelings of depression and
frustration after the win, show trouble in compromise with the unfamiliar world, and often
experience demands from relatives, friends and business people to ‗share the wealth‘. The
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customary theory is that husbands always identify a family‘s social class, while wives should
live it.

Women generally get their social status from their husbands. In fact, the facts specify that the
women who are physically more attractive tend to ‗marry up‘ to greater attractive men.
Women mostly have resource of sexual appeal, historically which has been considered as one
of the few possessions they were approved to have, for the financial capital of men. But
presently many women contribute equally to the family‘s well-being as men do and have
comparably employed in jobs or even possess better status than their spouses. According to
popular Cosmopolitan magazine revelation, ‗Women who‘ve become liberated enough to
marry any man they please, regardless of his social position, report how much more fun and
spontaneous their relationships with men have become now that they no longer view men
only in terms of their power symbols.‘

Working women generally tend to balance both their own and their husband‘s respective
positions while assessing their own subjective status (50). Nevertheless, a potential spouse‘s
social class is often a significant ‗product attribute‘ while estimating different options in the
interpersonal marketplace. Popular magazine Cosmopolitan discussed this dilemma, that
involvement of social class difference is still an issue in the mating game. For example ‗you
have met almost a perfect man and both of you adore thrillers of Dashiell Hammett, Mozart,
and tennis. He trained you for jet-skiing and you taught him the qualities of tofu. The
problem is that you are an executive who earns ninety-thousand dollars annually and he is
just a taxi driver.

Check your progress: 1

i) Most of the societies possess ________________that provide higher status to some classes
of people than others.
ii) Marketers always remain ________________of the social class of their target market, and
also need to understand the dynamic of the different social classes.
iii) ___________________mostly consists of physicians, lawyers, top level engineers, top
management of medium and large corporations, some college university professors and
others whose profession depend on higher education.

5.4 Problems with social class segmentation:

Social class remains one of the important ways to classify consumers. Several marketing
schemes do aim different social classes. Though, marketers generally get failed to utilize
social class information effectively because of the following reasons:
 They have ignored status unpredictability.
 They have ignored inter-generational movement.
 They have ignored subjective social class including the class which a consumer can
identify rather than the one he/she belongs to.
 They have ignored customers objectives to modify their class standing.
 They have ignored the societal status of working wives.

5.5 Applications of social class:

 How social class affects purchase decision:
Diverse stores and products are perceived by customers to be suitable for some social classes.
Customers belonging to working-class generally have a tendency to assess products in more
useful terms such as durability or comfort not on style or fashion ability. They did not like to
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experiment with novel products or methods, such as coloured appliances or new furniture.
Similarly, more wealthy people likely to be concerned about the body image and overall
appearance, so they are more enthusiastic customers of diet foods and soft drinks as
compared to people living in small working-class towns. For example the cola market, that
can be segmented by social class.

 Class differences in world view:

The main difference in social class involves the worldview of customers. The people
belonging to working class included the lower-middle class people and are more friendly and
firm. For example, men of working-class families likely name local sports figures as heroes
and are less likely to take long holidays in out-of-the way places (55). Instant needs, like new
TV or refrigerator, likely to speak a lot about the selling behaviour for these customers, while
the higher class people tend to concentrate more on long-term objectives, such as saving
money for college fees or retirement. Working-class customers mostly depend on relatives or
family members for emotional support and tend to familiarise themselves in terms of the
community and not the world at large. These are more conservative or traditional and family
oriented individuals. To maintain appearance of one‘s property and home is a main concern,
regardless of the house size. Working class people generally like material goods and do not
necessarily envy those who are above them in social standing. The upholding of a high-status
lifestyle is often not observed as valuable the effort. One of the blue-collar purchaser
commented: ‗Life is very difficult for those people. There have more breakdowns and
alcoholism. It should be very tough for them to maintain the status, the clothes and the parties
that are expected. I don‘t think I‘d want to take their place.‘ This quote by blue-collar
customer might be right as good things always emerged to go hand in hand accompanied with
higher status and wealth, and this picture is not that clear. Emile Durkheim one of the social
scientist found that suicide cases are found to be much higher in wealthy people. In 1897, he
citied that ‗the possessors of most comfort suffer most‘. The pursuit of happiness for riches
has a great potential to end in a consequences of unusual or deviant actions, depression and
destruction and this idea is well supported by affluent American consumers (they complete an
standard of $176,000 a year). Though these types of people are found to be in the top 2.5 per
cent earnings bracket in America, just 14 per cent are found to be very well off.

Taste culture, a concept which distinguishes individuals in terms of their academic and
aesthetic preference, and is useful in understanding the important and slight distinctions in
utilization options between the social classes. Taste cultures mostly imitate education also
including income-related issues, and this division is frequently made between high culture
and low-culture groups. These types of views generally met with disapproval due to the
implicit worth judgements involved. They are priceless as they identify the survival of groups
based on mutual tastes in art, literature, decoration of home and so on.

In one of the model studies of social variation in taste, researchers divided homeowner‘s
belongings although asking additional typical questions regarding income and occupation.
Bunch of furniture and decorative items which found to emerge mutually with some
reliability were recognized, and different clusters were found depending on the customer‘s
community status. For example, artificial flowers, religious items and still-life pictures
tended to be found collectively in quite lower-status living rooms, while a cluster of
sculptures, abstract paintings and modern furniture were likely to appear in a higher-status
home.
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One more approach of social class focuses mainly on variation in the categories of codes used
within different societal stratum. Invention of codes is valuable and important to marketers,
as they allow them to communicate within the markets using ideas and conditions likely to be
understandable and acceptable by particular consumers. The behaviour of these codes differs
from one type of social class to other. Restricted codes are generally dominant among the
working class, while elaborated codes are dominated by middle and upper classes.
Restricted codes mainly focus on the content of objects, not on relationships between the
objects. Elaborated codes are more complex and difficult and dependent upon a more
sophisticated world view. These codes differ in the way clients approach in some basic
concepts like objects, time and social relationships. Marketing appeals which are based on
these differences in mind and will result in rather different messages. For example, a life
insurance advertisement targeted at a lower-class individual may be represented in simple,
straightforward terms a hard-working family man who feel good instantly after buying a
policy. An upmarket appeal may portray more wealthy older couple bordered by pictures of
their children and grandchildren and have extensive copy highlighting the happiness and
satisfaction that comes from planning for the future and depicting the profits of a whole-life
insurance policy.

 Targeting the poor:

Poor people apparently have not so much to spend as compared to rich ones; they have the
similar essential basic needs as everyone else. These low-income families buy staples such as
bread, milk and tea at the same rates as average-income families do, and minimum wage
level families spend a greater than regular share on out-of-pocket rent, health care costs and
food consumed at home. EU-15 countries in 2001 had certain household types which are
more likely to be at danger of poverty: they are generally single parents (mostly females)
with dependent children, young people living alone, old people living alone, and also two-
adult households with three or more than three dependent children. The unemployed
generally feel disturbed in a customer based society, as they are not able to get many of the
objects that we ‗need‘ to be successful according to our culture. Nevertheless, idealized
marketing representation doesn‘t appear to appeal low-end consumers on which survey has
done by researchers. In fact, one way to maintain self-esteem is by placing oneself out of the
culture of consumption and highlighting the worth of a simple way of life with less stress on
materialism. In many cases, they get pleasure from the advertising as an entertainment source
without actually desire for the products; a 32-year old British woman commented that,
‗They‘re not aimed at me, definitely not. It‘s fine to look at them, but they‘re not aimed at me
so in the main I just pass over them.‘

Various marketers provide commodities and services for low-income consumers. These
approaches might be clear in some examples like that of S.C. Johnson & Son, makers of Raid
insect spray, frequently hosts ‗cockroach evictions‘ at inner-city housing developments.
Other strategies lift significant and useful ethical issues, particularly when marketers of so-
called ‗sin products‘ like tobacco and alcohol single out what several people feel is a
susceptible viewers. Other example, producers of fortified wines and malt liquors concentrate
more in poor areas where they are familiar that their products can sell best.

 Targeting the rich:

Presently we all are living in an age where best departmental stores advertise Donna Karan
and Calvin Klein Barbies, and Mattel‘s Pink Splendor Barbie come up with full crystal
jewellery and bouffant gown sewn with 24-carat threads. That ‗living doll‘ is dressed in
Million Dollar Miracle Bra having 100 carats of real diamonds offered by Victoria‘s Secret,
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and somebody should buy this stuff. Numerous marketers always attempt to target wealthy
and well off markets and this practice frequently make a sense, as these customers apparently
have all the resources to spend on these costly products. One of the popular magazines of
America ―The Robb Report‖ mainly targeted at the affluent people.

Though, it can be a big mistake to suppose that each person with high earnings have to be
placed in the same market segment. It was a well-known fact that social class involve more
than total income: as well as a way of life, and rich customers comfort, interests and
expenditure priorities are drastically influenced by such factors as from where they got their
money, how they got it, and how long they have had it. For example, the marginally wealthy
people tend to desire sporting events to cultural activities, and half which are super rich are
regular viewers of art galleries or the opera.
The rich people are different from others within the same community. Only income can‘t be a
good interpreter of consumer nature, it can further segmented affluent people in terms of
values, attitudes and preferences. For example, according to business experts, drivers in the
lavish and luxury car market can be divided as follows:
i) Cadillac holders want to be chauffeured. They are not bothered about the colour and
the styling details of the car. Their main concern lies in comfort and the impression
they make on others.
ii) Porsche owners wish to drive themselves. They are more concerned about the
performance not luxury. Red is their favourite colour.
iii) Jaguar possessor are more sober. They are more interested in stylishness and favour
darker colours.
iv) Mercedes holders like to feel they are in control and prefer gentle shades like grey
and silver.

 Old money:
When individuals possess sufficient money to complete all goals and buy products and
commodities they want, paradoxically social differences no longer revolve around the amount
of wealth they have. While, it is important to know from where the money came and how to
spend it. For example, the ‗top out-of-sight class‘ exist mainly on inherited wealth.
Individuals who have huge sum of money from their own labour are not liable to be included
in this group; however their showy utilization pattern may symbolize an effort to prove their
wealth. Simply the occurrence of wealth is not enough to attain social fame; family history of
community service and humanity is also important, which is frequently manifested in
concrete and real markers that allow these donors to attain a kind of immortality for example,
Rockefeller University or the Whitney Museum. ‗Old money‘ customers are more liable to
make differences with themselves in terms of inheritance and ancestry rather than wealth. Old
money individuals such as Caldwells are secure in their position, because they have been
trained their entire lives to be wealthy.

 The nouveaux riches:

Many affluent people do not make out how to be wealthy. The popular myth of Horatio
Alger, where a person goes from ‗rags to riches‘ due to hard work and little luck. These are
still a dominant power in Western society and in Asian societies as well. Though many
individuals in reality turn out to be ‗self-made millionaires‘, they frequently come across a
problem once they have become rich and have transformed their social status. The customers
who have attained great wealth and have recently become part of upper social classes and are
known as the nouveaux riches, a word occasionally used in an offensive way to describe
new comers to the world of wealth. The nouveau riches phenomenon is widespread in
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Russia and other eastern European countries, where the conversion to capitalism has lined the
way for a novel class of well-off consumers who are spending generously on luxury items.
One study of rich Russians recognized a group of ‗super-spenders‘, who make $1,000 a
month and use as much on flexible items as they do on lease. They always like to expend
more money, but are annoyed by the lack of class products and services available to them.
Many nouveaux riches are plagued by status anxiety. They observe the cultural background
to guarantee that they are doing the ‗right‘ thing, wearing the ‗right clothes‘, being seen in the
‗right places‘, and using the ‗right‘ caterer, and so on. Showy consumption can therefore be
viewed as a type of symbolic self-completion, where the extreme display of codes or symbols
found to signify ‗class‘ is used to make up for an internal lack of guarantee regarding the
‗correct‘ way to act.

 The „Get Set‟

Having more wealth is found to be an important and useful element of affluence; this feature
might be as much determined by attitude and approach towards consumption as it is by level
of income. Many marketers have recognized a consumer segment consists of well-off, but not
rich, individuals who wish to have best products and services, still they might have to be
choosier regarding those stuffs they are able to buy. These customers are more sensible
regarding what they can have for which they manage to pay and wish to give up in some
areas so that they can have the best in others. Many marketing and advertising research
organizations have approved this segment some labels such as the New Grown-Ups, the
Influentials and the Get Set. Whereas numerous upper-class brands attempt in the past to
down market them to draw attention of the mass market and there are several signs that this
strategy is reversing. Due to Get Set‘s importance on class and quality, one picture is that
marketers will support lots of people to ‗buy up‘ products linked with the upper classes, yet if
they are strained to buy less. For example, a print movement or campaign for Waterford
Crystal. The theme line, ―Steadfast in a world of wavering standards‖ , is designed to attract
consumers who want authenticity and lasting value

Activity: 2
Suppose, you are a marketing manager. How would you take the advantage of social class to
develop your business?
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Check your progress: 2

iv)________________________ includes working class of skilled or unskilled people, and
found to be a backbone of society.
v) The idea of ______________________was developed to measure the influence of
inconsistency on the social and personal behaviour.
vi) ____________________a concept which distinguishes individuals in terms of their
academic and aesthetic preference, and is useful in understanding the important and slight
distinctions in utilization options between the social classes.

5.6 Summary
Most of the societies possess social-class hierarchy that provide higher status to some classes
of people than others. These classes composed of specific identifiable groups of persons
whose lifestyles and behaviours are different from members of the other classes. Members
belonging to a specific or particular social class generally share same behaviour patterns and
moral values. Social class shows a major influence on customer‘s behaviour and their
purchasing habits. Social class can measure an external influence on buyer‘s behaviour as it
is not a function of knowledge or feelings. Usually, people are grouped in social classes or
status according to their wealth or income, education, type of occupation and so on. Social
class can show deep effect on buyer‘s spending habits, the most noticeable effect is the level
of non-refundable earnings of each social class. Generally, the rich have the great capability
to buy more consumer goods with high quality than those with less income. Marketers always
remain alert or aware of the social class of their target market, and also need to understand
the dynamic of the different social classes. If a marketer desires to target efforts for upper
classes, then it should be designed in order to meet their expectations in terms of service,
quality and atmosphere. There are different categories of social class: upper class, upper
middle class, lower class, lower middle class, working class, lower class. It has been proved
that social class is difficult to measure as it is a complex or complicated model dependent on
a number of factors. Earlier different measures like the Index of Status Characteristics
developed in the 1940s and Hollingshead developed the Index of Social Position in the 1950s
were employed to measure social class. Most of the measures were planned to accommodate
the traditional and conventional nuclear family, having female full-time homemaker and only
male salary earner in the centre of his career. These measures have difficulty in accounting
for young singles living alone; two-income families or households headed by a female which
is more common in present day society. It can be noted that accuracy and precision of any
survey is mostly dependent on the interviewer‘s judgement, especially about the class of the
respondent‘s neighbourhood. These types of impressions stay in danger of being subjective
by the interviewer‘s own conditions, which might influence his or her standard of evaluation.
Customers having some standard of living and level of expectations can have trouble in
acclimatizing to abrupt prosperity and get engaged in showy and careless display of wealth.
Social class has various applications too, that are discussed in detail in this chapter.

5.7 Answers to check your progress:

i) ( social-class hierarchy)
ii) alert or aware)
iii) (Upper middle class)
iv) (working class)
v) status crystallization)
vi) Taste culture,)
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5.8 References
Bourdieu, P. 1987. ―What Makes a Social Class?‖ Berkeley Journal of Sociology vol.22 pp.
1-18.

Carchedi, G. 1977. The Economic Identification of Social Classes (London: Routledge &
Kegan Paul).

Ehrenreich, B. and J. Ehrenreich. 1971. ―The Professional-Managerial Class,‖ Radical

America. 11:2.

Gerth, H. and C. W. Mills. 1958. From Max Weber. New York: Oxford University Press.

Giddens, Anthony. 1973. The Class Structure of the Advanced Societies (New York: Harper
and Row)

Goldthorpe, John H. 1980, Social Mobility and Class Structure in Modern Britain, Oxford:
Clarendon Press.

Goldthorpe, John H. 1990, ‗A Response‘ in Jon Clark, Celia Modgil and Sohan Modgil (eds.)
John Goldthorpe: Consensus and Controversy,London: The Falmer Press, pages 399-440.

Goldthorpe, John H. 2000, On Sociology: Numbers, Narratives and the Integration of

Research and Theory, Oxford: Oxford University Press.

Goldthorpe, John H. and Gordon Marshall, 1992, ‗The Promising Future of Class Analysis: A
Response to Recent Critiques‘ Sociology 26, 3: 381-400.

Erikson, Robert and John H. Goldthorpe, 1992, The Constant Flux: A Study of Class
Mobility in Industrial Societies, Oxford: Clarendon Press.

Weininger, Elliot B. 2002. Class and Causation in Bourdieu. Pp. 49-114 in Current
Perspectives in Social Theory, vol. 21. Ed. Jennifer Lehmann. Amsterdam: JAI Press.

McNall, S. G., R. F. Levine, R. Fantasia (Editors). 1991. Bringing Class Back in :

Contemporary and Historical Perspectives

5.9 Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education
2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning
5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books
6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.
7. Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.
8. Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition
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5.10 Model and terminal questions:

Q1: Explain the concept of social class in detail.

Q2: Describe in detail various categories of social class.
Q3: Measurement of social class and various problems related to it.
Q4: What are the various applications of social class?

5.11 Glossary:
 Inequalities: lack of equality
 Underprivileged: not enjoying the same rights
 Restricted: limited
 Anxiety: a feeling of being anxious
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LESSON: 6
Family

Structure:
6.0 objectives
6.1 Introduction
6.2 The changing structure of family
6.3 Functions of family
6.4 Family decision making
6.5 Family life cycle
6.6 Relevance of family for marketers
6.7 Summary
6.8 Answers to check your progress
6.9 References
6.10 Suggested readings
6.11 Moderl and terminal questions
6.12 Glossary

6.0 Objectives:
After reading this lesson, you will be able to:
 Explain the concept of family
 List the functions of family
 Discuss the concept family decision making

6.1 Introduction:
The word ―family‖ denotes a sociological unit. This term is typically used for two or more
people residing together, related to each other by blood or marriage. With the passage of
time, there has been a major change in size and composition of family across different
cultures. On the basis of composition and size, two types of families exist. First one is joint
family, comprises of grandparents, parents, children, uncles, aunts, their kids, all residing
together under one roof. Second one is nuclear family, comprises of parents and their kids
only. Such families are quite small in size as compared to joint families. There has also been
a major shift in the roles played by different family members. Now both men and women are
playing an active role in making various important purchase decisions, and now women are
performing such roles which were reserved for men in earlier days and vice versa. Thus, with
the passage of time, this sociological unit has changed a lot in terms of composition, size and
roles being performed by different family members. A marketer may refer families as
households, but it is notable that not all households are families. A single person or a group
of people like friends, peers etc. living together under a single roof without a relationship also
constitutes a house, but it cannot be called as a family. Families and households are treated
synonymous in consumer behaviour.

In present time, mainly three types of families exist around us i.e., married couples, nuclear
families and extended families. A newly married couple(husband and wife) without any kid
comprises a married couple family. A nuclear family is comprised of husband wife and their
kids only and an extended family is comprised of grandparents, parents, uncles, aunts etc.
living together under single roof..

6.2 The changing structure of family

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The following three functions of family give us a glimpse of changing structure of family in
present time. These include:

 Economic well being

 Emotional support
 Suitable family lifestyles

 Emotional well-being
Families residing in developed countries are no longer formed for the primary purpose of
economic security. Fulfilling the financial needs of family members is no more a basic
function. Last 30 years has shown lot of changes in family structure. The traditional role of
husband to fulfil financial needs and wife acting as home maker has changed considerably.
Now , it is a very common practise in almost all developed and developing countries, that
married women having children go to work to share the economic responsibilities with their
husbands.
There is a change in the economic role of children also. Now, most of the teenagers work and
earn, but it is very rare to find them supporting their families financially.

 Emotional support
Providing emotional support to all family members is a very basic and vital function of
modern family. Emotional support includes love, care and intimacy. This function is
successfully accomplished when all the family members assist each other in making decisions
or coping with problem situations. Greeting card companies make such cards that parents can
give to their children in order to show their love, affection and support and vice versa is also
true.

 Suitable family lifestyle

Creating an appropriate lifestyle for family is another significant function in accordance to
consumer behaviour. It depend on the personal experience and goals of partners that they
decide on different decisions regarding reading, writing, TV watching, studies of their
children, recreational activities etc.

6.3 Functions of family:

A variety of functions are performed by family in society. Different sociologists have
different views regarding the functions of family. Famous Sociologist Maclver has also
given a classification. He grouped these functions into two types i.e., Essential and Non-
Essential functions. Although, differently classified by different sociologists, all are
emphasising on the related facets in different ways. The functions of family are described as
under:
1) Primary or Essential functions
2) Secondary or Non-Essential functions
(1) Primary or Essential functions of family:
As we have already seen above, MacIver has distributed family functions into two broad
types, i.e., essential and non-essential types. He kept four main functions Under essential
functions which includes:
 Stable satisfaction of sex needs,
 Production and rearing of children,
 Provision of home
 Socialisation.
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Besides execution of these functions, family may also execute some other important
functions. But it is important to remember that essential function constitute only those which
are very vital and except family, no other institution can perform them effectively. Now, let
us discuss these essential functions in detail:
i) Stable satisfaction of Sexual needs:
MacIver considers it to be the most essential function of a family. This has been satisfied by a
family since the beginnings of human civilization. sexual need is an important and very
powerful urge of human beings. Fulfilment of sexual need in a desired way is the first and
most important duty of every family.
Sexual behaviour of the members of a family is controlled through the tool of marriage. A
long term relationship between husband and wife is dependent on the satisfaction of sexual
instincts. A person with Satisfied sexual need in a required way shows normal growth in
personality. Even, ancient Philosophers like Manu and Vatsayan believed that, fulfilment of
sexual needs is the main objective of family and its suppression could create disturbances in
the development of personality.
ii) Procreation and Rearing of Children:
Procreation and Rearing of Children is also an essential function of family. Procreation is the
result of stable and satisfied sexual need, which offers reasonable grounds for the production
of children. This function helps in the continuity of family as well as human race. So, family
fulfils a very vital function of Continuation of human race. Production of children is not the
final step of this function but it‘s child rearing in most efficient manner. Family is considered
to be the best place for child rearing.
A family is responsible for providing foodstuff, accommodation, love, safety and security to
its members. A very healthy healthy atmosphere is provided by a family for the socialization
and personality development of a child. All needs of a child are fulfilled by family. It has
been rightly remarked that ‗‘family is an institution par excellence for the procreation and
rearing of children and It has no parallels‘‘.
iii) Provision of Home:
Providing a common home and living together under one roof is another essential function
performed by family. Children are born and reared in a home only. In modern days, children
are delivered in hospitals but they are taken care and brought up in their home only. A child
is carefully brought up in a home under the presence of all its members.
A person feels happy and relaxed with other members of his family at his home. All the
members of family feel emotionally and psychologically supported at home. ll the members
need a home to live happily with comfort, peace and protection. A family creates so many
recreational activities for all its members and provides them a peace of mind.
iv) Socialization:
Socialisation is also considered to be an important function of family. As we commonly say,
―man is not born human but made human‖. A family is considered responsible for the
process of socialisation. It is only after socialisation that a new born baby becomes human
being.
Family is the most suitable place for small children to learn norms, beliefs, and ethics of
society. During the process of socialization, small children learns social culture and attains
character which has a direct influence on the development of his personality. Family teaches
him/her the difference between good and bad and finally this process makes him a social man
acquired with a good character.

(B) Secondary or Non-essential or secondary functions of family:

MacIver includes following under non-essential or secondary functions,:
 Economic,
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 Religious,
 Educational,
 Health
 Recreational.
These non-essential functions are performed along with essential functions. These functions
are termed as secondary or non-essential because they can also be completed along with
other social institutions concurrently. Let us discuss these functions in detail:
(1) Economic functions:
Economic functions of a sociological unit are being executed since ancient times. In those
days, family served the purpose of both, production as well as a consumption unit. Families at
that times were self-dependent. But now the has changed, families are now acting only as a
consumption unit and all its economic functions are performed by other agencies.
(2) Educational functions:
Educational function is also considered to be a secondary or non-essential function. It is the
responsibility of a family to complete this function. In the beginning, family acts as a major
institution for a human babies where they get knowledge, trade secret and skill. Then they are
provided with primary education in order to have a bright future and high character. It is only
mother which proves to be a best teacher in making a child to learn manners, discipline,
character etc. As we all know, time has changed. Now, so many educational functions are
taken over by a school from family but there is no doubt that family is still considered to be
the most important source is teaching the most important lessons in life.
(3) Religious functions:
Family serves as a core for all religious happenings. In families, prayers were recited together
and various rituals and rights were also performed jointly. They celebrate different religious
ceremonies in their homes. Parents teach different religious values to their children. In this
way, religious beliefs of parents are transferred to their children. Presently, time has changed
a lot. People are having more of a secular outlook now. Families praying together and
celebrating their religious ceremonies is a rare scene. But still, family continues to play an
important role to mould religious attitudes of its family members.
(4) Health related functions:
Family also looks over the health of its family members. Sick old people are properly taken
care and an appropriate treatment is provided to them in a family. Necessary nutrition is
provided to all its members, so that they could live a healthy life. With this fast changing
world, families have also changed. Every member is so busy in his work. Now they have
passed on some of their health related responsibilities to hospitals.
(5) Recreational function:
It is very important for a family to get entertained and various recreational activities are
performed for that. In earlier days, family members used to organise feasts together, family
picnics etc. as a source of their enjoyment. Various festivals were celebrated together. But
now, these assemblies are replaced by clubs. But at present time, it is often said that family is
modern club without any evil effects
(6) Cultural functions:
Cultural functions is another secondary function performed by family. Family helps in In
conserving various cultural characteristics. It is only family, from where a person attains
various cultural characteristics and then passes on to its next generation. A family is often
reflected as a core of culture.
(7) Social functions:
A person learns a lot about a society from a family. It communicates to them about
prevailing discipline, norms, traditions, manners etc.. It also control its members from doing
 P a g e | 80

any unaccepted act. Parents have a direct control over their children in a family, so they can
control their behaviour and can help them in becoming a good citizens.
Activity: 1
What additional functions that you think are the essential part of a family? Explain with
suitable examples.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______

6.4 Family decision making:

Each member of the family has a different role to be played in a family. Certain individuals
act as information collectors who‘s duty is to gather information about relevant products.
Information collectors/gatherers are having lot of control over communicating only selective
information to the other family members. It is quite possible for them to pass only that
information favouring their chosen products but they don‘t have the power to decide between
the different available options. Information gatherers may have an influence on purchase
decisions, but It depends solely on decision makers to make a decision. They have the control
over following decisions:
 To buy or not to buy;
 Which option appropriate to buy;
 Which preferred variety in that option to buy;
 Which would be the appropriate place to buy it;
 Appropriate time to buy.

It is important to mention here, that decision maker‘s role is distinct from that of the
purchaser. This creates some sort of problem for a marketer, as the purchaser and a decision
maker cannot be targeted with similar marketing efforts. Purchasers need point of purchase
marketing efforts(POP), that are quite different from that of decision makers. It is even quite
difficult to differentiate between a decision maker and a purchaser. Let us try to differentiate
on the basis of following points:
 The kind of a product to be purchase may be decided by a decision maker, but he is
not in control to decide about the brand.
 It depends on the decision of a purchaser to buy a suitable substitute product, if the
decided product is not available.
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 It is also possible for a purchaser to neglect instructions. It may happen deliberately

or due to some error.
Conflict is quite common in a family decision. In reality, India has a very small percentage of
such families which are affluent enough and don‘t have any conflict over family resources.
Such conflicts are very common in families having children and only one parent engaged in
earning. This creates lack of resources and which finally give rise to conflicts. Values play a
very important role in decision making and this may give rise to a conflict too. Suppose, due
to the influence of values, father considers it important to save money for children‘s future
and mother on the other hand values to spend money in present to impart them with good
studies to have a bright future. It is difficult to decide about, who is right? As both the parents
have different values, so they are acting under that influence. Involvement of other parties
like children and other relatives may make the situation more complex.
In such situation, family members may try several strategies to find a peaceful way of
resolving the conflict. One such strategy is of bargaining. In this strategy, a family member
may sacrifice something to get something else in replacement. For example, the husband
decides her wife to have an expensive cooking course if he can purchase a new car. In the
same way, a child may promise to top in class, if he could get a videogame for that.
Second strategy is reasoning. In this strategy, a family member tries to convince other
members to accept his view by the use of a valid and rational arguments. Such a strategy has
a major influence of values. Even if a family member has a honest intent in his mind, there
may be some legitimate difference in other members regarding his/her views due to their
values. This strategy may also be applied in a dishonest way. A family member may simply
try to ―wear down‖ the other members by a never ending talk in appearance of logical
reasoning(negative reinforcement).
Impression management is another strategy used by different family members. Using this
strategy, an individual attempts to make one side look better than the other. For example, a
person may argue that TV plays a very important role in development of a child. Using
authority is another strategy. In this strategy, an individual stresses on right of a person to
make a choice. Emotions can also be used as a strategy to resolve a conflict. For example, a
child may start to cry if her mother won‘t let her buy a new cycle.
Check your progress: 1
i) The word ―family‖ denotes a _______________unit.
ii) Each member of the family has a _______________role to be played in a family.
iii) A person passes through various ____________, and _______________stages right from
childhood to the year of retirement as a member of a family.

6.5 Family life cycle:

6.5.1 What is a family life cycle?
A person passes through various emotional and intellectual stages right from childhood to the
year of retirement as a member of a family. This cycle starting from childhood and ending
with the retirement constitutes a cycle called family life cycle. A person gains various skills
and experience in every step of this cycle. They may face several challenges, which could
help them in gaining new important skills to solve problems. These skills and experience help
an individual to pass through various stages that every family go through.
Every person is not fortunate enough to go through all these phases smoothly. Several types
of situation may arise in front of a person, like illness, death or financial problems. One plus
point of family cycle is that, if a person is unable to develop or learn a particular skill in one
stage, he/she could do that in later stages.
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6.5.2 Why is it important to understand the family life cycle?

Learning the required skills experience at each stage permits you to effectively shift from one
stage of family life cycle to the next. If you shift from one step of life cycle to next step
without understanding the required skills and knowledge, you may have difficulty in
relationships and future changes. It is clearly marked in family life cycle theory, that
―successful transitioning may help to prevent diseases and emotional or stress-related
disorders‖.
It don‘t really matters, who you are, but your understandings and experiences over the family
life cycle will definitely have an influence on ―who you are‖ and ―who you become‖. Your
success in family depends on your ability to learn and experience various skills throughout
your life cycle. The more you are able to cope up with the challenges at each stage, the more
successful you are likely to be.
6.5.3 The Individual and Family Development
At every stage of our life, we face different types of challenges. Conquering these challenges
with required experience and skills is an important achievement. Take an example of a new
born baby. He is fully dependent on his care givers, so he is learning to trust them. But, a teen
always try to find his own identity.
Various theorists like Erik Erikson and Jean Piaget explained the steps in development of an
individual. The above given example of psychological development of small children and
teens has been proposed by Erik Erikson. Jean Piaget in his research explained the stages of
cognitive development. These stages are very beneficial for a counsellor. Understanding
these stages of development can provides them with an insight of every phase of a person‘s
life. This aids them to pay consideration to an individual‘s growth or sluggishness in a
particular phase of life.
An individual‘s growth during various stages of life is not only the type of growth that
deserves a counsellors attention. A person goes through various stages of family. If
counsellors are interested in family therapy, they firstly need to understand the developmental
stages of family. Family has several developmental stages, that are discussed later in this very
topic. These developmental stages are grouped under the stages in family life cycle.

6.5.4 Stages in Family Life Cycle

Following are the stages in family life cycle:
1. Unattached Adult:
The key issue arising in this stage is the separation of an adult from his parents. Ruby is now
20 years old she has started to attend a college. For the first time, she is experiencing life on
her own. Most important and critical tasks for her at this stage include separation from
family, making new friends, connecting with peers etc. and start working to have a successful
career.
2. Newly Married Adults:
Getting committed to marriage is the key issue in this stage. Now, Ruby has turned 24 and
she has just married to a man named Joseph. She no longer thinks of herself only, but views
the welfare of her relationship as her prime objective. Her husband is also playing his role by
satisfying various essential and non-essential needs.
3. Childbearing Adults:
Ruby has just given birth to a child named Nikki. Now they are expected to make changes in
their usual life activities. They are expected to take care of new born baby in a proper manner
and fulfil all her needs.
4. Preschool-age Children:
Now, John and Ruby has started to send Nikki to a preschool. She is full of energy and is
very curious to her surroundings. She is much loved by her parents, and that has made her bit
 P a g e | 83

challenging to look upon. Joseph and Ruby are now in a stage to accept the new personality
of their child. It is very important for the couple to spend time together and whenever
possible, go on outings.
5. School-age Child
Now Nikki has grown up. She has turned 9 years old. She has developed friendships with
other children in her class. Now, it is the time for Joseph and Ruby to make decision
regarding their kid‘s relationship with other friends outside family. It solely depends on her
parents, whether they allow her to go to her friend‘s house or to call her friends to her home.
This is the time, when parents have to boost her child for social interactions as well as for her
studies.
6. Teenage Child
Now, Nikki has turned 14 and it becomes a challenge for Joseph and Ruby to look up to her.
She needs more independence and more flexible family boundaries. It would be most
appropriate time for Joseph and Ruby to give her bit more independence and shift a bit in
their parental role. It would provide more growth opportunities to her life.
7. Launching Centre
It is very hard for Joseph and Ruby to believe, but now Nikki has grown up and needs to head
off to a college. Now, she needs to leave her home and live on her own. Even though Nikki
lives away from her home, but she regularly visits her parents after some days.
8. Middle-aged Adults
As Nikki left home, so John and Ruby are feeling very much alone. Now it again Ruby and
John alone in home and they are facing each other. Initially, their conversations were very
much focused on Nikki, but after she left, they no longer talk much about her. Nikki is now
26and she has married Rob. Parents welcome Nikki, whenever she comes to visit her home
with Rob. The problem that John and Ruby are now facing is the illness of their parents.
9. Retired Adults
Initially, John and Ruby were living in Canada, but now they have shifted to USA. Now, they
have retired from their jobs. They have accepted their retirements and are now taking care of
each other. They are in close contact with Nikki, and are also having the pain of losing their
parents.

6.5.5. What can disrupt a normal cycle?

Stress, chronic illness, and some other crises in life can disrupt the normal life cycle. You
may not be able to move to the other phase of life due to continued crises and other problems.
In such situations, you may have to move to other phases of life without having the necessary
skills in order to adapt to changes.
Check your progress: 2
iv) ___________________ the required skills experience at each stage permits you to
effectively shift from one stage of family life cycle to the next.
v)______________, _______________, and some other crises in life can disrupt the normal
life cycle.

6.6 Relevance of family for marketer:

As we already know, family is a sociological unit and this unit is of utmost importance to a
marketer. This importance is due to following three reasons:
 Monetary source for dependents,
 Indication of values and lifestyles,
 Root for socialization.
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a) Monetary source: Most of the families in India are comprised of a single or dual wage
earners and other family members acts as dependents; in most of the cases, only father and in
some cases, both father and mother acts as wage earners and children acts as dependents.
Earlier, this role of earning was limited to men only, but due to the changes in our society,
today women are also working outside their homes and fulfil financial needs. Major portion
of market buyers is comprised of children. They have different needs and desires but they
don‘t have money. The money is provided to them by their parents. Thus, fulfilment of
financial resources for the economic well-being of family is an important function played by
the head.
b) Values and lifestyles: Parents acts as a source of values and lifestyles for other members
in a family. They teach their children with various norms and lifestyles. These teachings have
a very deep impact on their children‘s lifestyles, studies, and other recreational activities
etc. The families, where both parents are earning has seen a change in lifestyles. Children are
getting very much self-determining and they are very clear about ―what‖ they need and about
their choices for various brands. People are very busy with their work, so they look for easy
way out. Now such products are available which are very suitable and troubles free. Take
example of fast food industry, which serve people with ready to eat packed food.
c) Socialization: Socialization has been described in the early parts of this chapter. This
primary role is played by a family right from childhood to adulthood of its members. The
process of socialization occurs at two stages:
 First, during childhood;
 Second is after marriage.
Socialization can be discussed at three levels:
 Socialization at childhood,
 Socialization at adulthood,
 Intergenerational socialization.

 Socialization in childhood: When the actions of elders are observed and imitated by
children in a family, we call it socialization in childhood. Values and behaviour are
communicated to children in a family in two ways:
i) Through direct teachings.
ii) Through indirect means i.e., by observing elders.
As the behaviour is observed and imitated, children in family gets rewarded, which makes
them to repeat the same behaviour again. In this way, a family plays very important role in
the process of socialisation.
 Socialization at adulthood: Socialization is a never ending process, which continues
throughout the life of an individual. As people grow into an adult stage, they start making
new friends and colleagues etc., they communicate with them and get influenced with their
behaviour. As they reach at the stage of marriage, again their behaviour shows a lot of
change. Both gets affected by their spouse behaviour and consumption patterns. They show
lot of adjustments with each other‘s values, lifestyles and behaviour. They take care of each
other‘s likings and disliking‘s. after having a child, they again show lot of changes and
adjustments according to the needs.
 Intergenerational socialization: As we have seen earlier, how social values, people‘s
lifestyles and behaviour is learned from a family and how they get transmitted from
generation to generation. In the similar way, peoples likings also gets transferred from
generation to generation. It has been observed that, so many people choose a brand that was
chosen by their parents. In the same manner, brand loyalty and other product choices also get
transferred from generation to generation. This process is referred as intergenerational
socialization.
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Activity 2
Suppose you are a marketer, what products you would offer to your consumers in different
stages of family life cycle?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______________________________

6.7 Summary:
The word ―family‖ denotes a sociological unit. This term is typically used for two or more
people residing together, related to each other by blood or marriage. On the basis of
composition and size, two types of families exist. First one is joint family, comprises of
grandparents, parents, children, uncles, aunts, their kids, all residing together under one roof.
Second one is nuclear family, comprises of parents and their kids only. Such families are
quite small in size as compared to joint families. In present time, mainly three types of
families exist around us i.e., married couples, nuclear families and extended families. A
newly married couple(husband and wife) without any kid comprises a married couple family.
A nuclear family is comprised of husband wife and their kids only and an extended family is
comprised of grandparents, parents, uncles, aunts etc. living together under single roof.
Families residing in developed countries are no longer formed for the primary purpose of
economic security. Fulfilling the financial needs of family members is no more a basic
function. Providing emotional support to all family members is a very basic and vital function
of modern family. Emotional support includes love, care and intimacy. This function is
successfully accomplished when all the family members assist each other in making decisions
or coping with problem situations. Each member of the family has a different role to be
played in a family. Certain individuals act as information collectors who‘s duty is to gather
information about relevant products. Information collectors/gatherers are having lot of
control over communicating only selective information to the other family members. Conflict
is quite common in a family decision. In reality, India has a very small percentage of such
families which are affluent enough and don‘t have any conflict over family resources. Such
conflicts are very common in families having children and only one parent engaged in
earning. This creates lack of resources and which finally give rise to conflicts. Values play a
very important role in decision making and this may give rise to a conflict too. A person
passes through various emotional and intellectual stages right from childhood to the year of
retirement as a member of a family. This cycle starting from childhood and ending with the
retirement constitutes a cycle called family life cycle. A person gains various skills and
experience in every step of this cycle. They may face several challenges, which could help
them in gaining new important skills to solve problems. These skills and experience help an
individual to pass through various stages that every family go through. An individual‘s
 P a g e | 86

growth during various stages of life is not only the type of growth that deserves a counsellors
attention. A person goes through various stages of family. If counsellors are interested in
family therapy, they firstly need to understand the developmental stages of family. Family
has several developmental stages, that are discussed later in this very topic. These
developmental stages are grouped under the stages in family life cycle. All the stages of
family life cycle has been given in detain in this chapter.

6.8 Answers to check your progress

i) ( sociological)
ii) ( different)
iii) ( emotional and intellectual)
iv) (Learning)
v)( Stress, chronic illness)

6.9 References:

Nuclear family – "A family group consisting of wife, husband (or one of these) and
dependent children." – Definitions of Anthropological Terms – Anthropological Resources –
(Court Smith) Department of Anthropology,
Zeitzen, Miriam K. (2008). Polygamy: A Cross-Cultural Analysis. Oxford: Berg. p. 9.
Benokraitis, N. V. Marriages and Families. 7th Edition, Pearson Education, Inc., 2011
Solomon, Barbara Miller (1985). In the Company of Educated Women. Yale University
Press.
Schiffman Leon G. & Kanuk Leslie Lazar – Consumer Behavior (Prentice Hall of India Pvt
Ltd, Eighth Edition)

6.10 Suggested readings

Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education Loudon, D. and
Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill

Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning

Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning

Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books

Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.

Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.

Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.

6.11 Model and terminal questions

Q1: explain the concept of family in detail.
Q2: what are the various essential and non-essential functions of family?
Q3: explain family decision making in detail?
Q4: explain family life cycle in detail.
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6.12 Glossary:
Sociology: the subject of development, structure and functioning of human society
Rearing: to feed and care
Procreation: produce young ones
Launching: to introduce a new product
Development: a specified state of growth or advancement
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LESSON: 7

Culture
Structure:
7.0 Objectives
7.1 Introduction
7.2 Characteristics of culture
7.3 Types of culture
7.4 Values
7.5 Core values
7.6 Value system
7.7 Applications of value
7.8 Norms
7.9 Types of norms
7.10 Characteristics and affect on consumer behaviour
7.11 Sub culture
7.12 Types of sub culture
7.13 Cross cultural consumer behaviour
7.14 Characteristics of a firm going global
7.15 Problems in cross cultural marketing
7.16 Summary
7.17 Answers to check your progress
7.18 References
7.19 Suggested readings
7.20 Model and terminal questions
7.21 Glossary

7.0 Objectives of this chapter:

After reading this lesson, you will be able to:
 Explain the concept of culture
 Discuss the concept of Norms and Values in detail
 Enumerate the concept of cross cultural consumer.
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7.1 Introduction:
Consumer performance generally deals with the study of selling nature of customers. This
behaviour assists to understand or know why and why not any person buys goods and
services from the market. There are numerous reasons or factors which affect the buying
choice of customers; out of all one of the most important factors includes cultural factors.

What is culture?
Culture is a complete assessment of the nature and character of the total society like
knowledge, laws, language, religion, music, art, technology, work patterns, food customs,
products and many other artefacts that provide society a unique essence. In other words,
culture represents society‘s personality. Culture includes learned beliefs, values and customs
that help to direct the customer nature of members of a particular society.

One thing which we all have in general is that we all are consumers or clients or we can say
that everyone in this world is a consumer. Each day of our life we purchase and consume an
enormous mixture of goods and services. Though, we all have dissimilar likes, tastes and
dislikes, therefore for making any purchasing decision, we adopt different performances. Lots
of reasons and factors influence how we live, buy products and consume them, being as an
individual or in a society. Outdoor factors include ethnicity, culture and social class which
affect how an individual customer purchase and utilize products, and also help in explaining
how different groups of customers act.
The study of culture cover all the characteristic features of a society such as its religion,
language, laws, customs, knowledge, traditions, technology, music, art, work patterns,
products and so on. All these aspects form a unique, distinctive personality of each society.
Cultural aspects are tremendously essential and form a constant influence in our life. Edward
T. Hall rightly quoted in his book entitled ―The Silent Language‖ that, ―It is a mould or a
shape in which we are all cast or shedding and it also controls our daily lives in many un-
assumed ways‖. The effect of culture on society is so usual and normal and so inbuilt that its
influence on behaviour is hardly noted. In this lesson on Culture, we are going to study the
meaning and nature of culture and how it is measured.
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7.2 Characteristics of culture:

1) Culture Satisfies Needs:
Culture exists to fulfil all the desires of people in a society. It recommend or offer direction,
order and guidance in all stages of human problem resolving by providing used and real
means of satisfying or pleasing personal, physiological and social needs. Likewise, culture
also offers suitability of dress for particular occasions like what to dress in when around the
house; around school; at work; what to wear to church; at a fast food restaurant, or going for
a movie. Cultural beliefs, customs and values continue to be pursued as long as they give
satisfaction or feeling of fulfilment. In context to cultural views, whenever a manufactured
good or a product is no longer suitable or acceptable due to its associated custom or values
and is not able to satisfy human needs, it should be modified.
2) Culture is socially acquired:
We don‘t get cultural knowledge from birth. It is the society which educate an individual its
different cultures and norms which are helpful for behaving better in the society. So, our
society where we live plays an important role in teaching its culture to any individual it can
be found that sometimes people stringently follow their culture merely because of the fear of
the society

3) Culture is Dynamic:
To accomplish the need of satisfaction, culture frequently must develop if it will work or
function in the best interests or welfare of a society. The marketers need to cautiously or
carefully examine the socio culture atmosphere in order to promote an existing product
successfully or to generate promising new products. The varying character of culture means
that marketers have to consistently reconsider: Why customers are currently doing and what
they do? Who are the buyers and the consumers of their products? When they carry out their
shopping? How and where they can be contacted by the media? What novel product and
service requirements are rising?

4) Culture is shared:
Culture consists of group traditions that connect together all the members of the society.
Common language is the vital part that makes it promising for people to share experiences,
values, and customs. Social Institutions convey the elements of culture and sharing of culture
Family is a primary agent for enculturation; Educational Institutions imparts learning skills,
history, patriotism, citizenship and technical training. Religious Institutions perpetuate
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religious consciousness, spiritual guidance, and moral training. Mass Media provide wide
range of cultural values.

5) Culture is learned:
From an early age, we start to acquire from our social atmosphere a set of values, beliefs, and
customs that build up our culture. Anthropologists have recognized three different forms of
cultural learning:

1. Formal learning is the education provided by adults and older siblings to a young
family member ―How to behave or act‖;

2. Informal learning in which a child itself learns mainly by imitating the behaviour of
others, like family, friends, or TV stars.

3. Technical learning is the learning in which teachers instruct or teach the child in an
educational environment regarding what, how and why it should be done.

Advertising can influence all three types of cultural learning's discussed above. Culture also
establishes what is appropriate for product advertising and also determines what people eat,
wear, travel and reside.

7.3 Types of Culture

 National culture:
This type of culture is widespread in a nation and is common to everyone
 Popular culture:
It is the culture of the masses with standards and conditions of mass appeal
 Subculture:
It includes a culture of a group within the larger society. Group identification can be
based on nationality of origin, region, age, race, religion, gender, etc.
 Corporate culture:
This type of culture is prevalent in companies and includes company‘s values, rituals,
customs, myths and Heroes

Hofstede‘s Five Dimensions model of culture show a deep impact on the way customers
observe themselves, goods they buy and utilize, buying processes, and the organisations from
which they purchase. Though, marketers are giving much interest in understanding macro
 P a g e | 92

cultures and how these cultures influence customer behaviour. He established five
dimensions of culture that are matter of concern and common in 66 countries. These can act
as a basis for differentiating, comparing and contrasting specific national cultures. They are
useful in recognizing environmentally responsive segments of the market.

1 Individualism versus collectivism

Pursuit of self- or group interest
Individualism explains the association among individual and fellow persons, or the
collectivity that exists in a society.

2 Power distance
Social inequality and submission to authority
Power distance imitates the extent to which a society accepts discrimination in power at
varied stages in organisations and institutions. It can affect preferences for centralization of
power, acceptance of different rewards, and the ways by which the people of different
positions and status work together.

3 Uncertainty avoidance
Tolerance/avoidance of ambiguity
Uncertainty avoidance is concerned with the different ways in which societies react to the
doubts or uncertainties and vagueness inherited or adopted in life. Many societies require
well definite rules/regulations or rituals to guide behaviour, while others are liberal towards
unexpected behaviour and ideas.

4 Masculinity/femininity
Segregation and superiority of male and female roles in society
This feature decides the degree to which societies grasp values customarily observed as
mainly feminine or masculine. For example, respect for achievement, violence, and the
attainment of money and material belongings are recognized with maleness; and
encouragement, concern for the surroundings and championing the underdog are linked with
a culture‘s femaleness

5 Abstract versus associative thinking

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Formation of value in goods based on cause or effect logic or association with events without
a reasonable link.

Activity: 1
Suppose you are a consumer. In how many different ways, culture effects your purchase
decision? Explain with examples.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_________________________

7.4 Values:
Generally, value can be explained as a faith or beliefs regarding several desirable end-states
to excel particular situations and directs selection of behaviour (66). Therefore, values are
general or very common and dissimilar from attitudes as they are not applied to specific
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situations only. It is believed that an individual‘s set of values plays an important role in his
or her utilization or consumption behaviours, as many products/goods and services are
procured because they will aid us to achieve a value-related goal. Two people can trust in the
similar manners for eg. Vegetarianism, however their fundamental faith scheme may be
relatively different like animal activism vs. health concerns. The level to which individuals
share a belief system is a job of an individual‘s cultural and social force. Supporters of this
belief system frequently look out for others having same beliefs, as a result of this, social
system overlaps and believer‘s tend to be revealed to information that maintain their beliefs
for eg. environmentalists hardly ever socialize with factory workers. Values deals with the
indefinable qualities or beliefs established and authorized by a specific society. Values are
dissimilar from traits, norms, attitudes and needs and share the following characteristics and
qualities discussed below:

• Values are likely to be unobservable.

• Values tend to be conflated with other psychological and social phenomena.

• Values often have cultural and historical unpredictability.

• Values generally express or convey an idealized state of being.

For example modern U.S. have certain values such as success; independence; achievement;
freedom; scientific discovery; progress; comfort; education; democracy and ideas of
religious, racial, sexual or gender superiority. There are found ten values including
stimulation, self-direction, universalism, hedonism, power, achievements, benevolence,
tradition, security and conformity.

Values affect both individual and group performances. Various sociologists worked on the
mechanism or methods through which values inspire, motivate and influence action in and by
society. Sociologists have established that values should be triggered in an individual or
group awareness to effect action. Once the values are activated, they guide to different stages
of acceptance for a particular actions. Values control perception, attention and understanding
of any situation and result in influence on the planning of individual and group action.
Sociologists also studied how persons learn values. Sociology mainly considers that an
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individual's values, formed through late adolescence and likely to be stable and firm across
whole life.

The specific values that inspire individuals differ across cultures, however inside each culture
there is generally a set of fundamental goals that most members of that culture agree are very
important. One off the comparison of management practices regarding industrial selling
behaviour in Europe and North America concluded that, growth of relationships is found
more important in Europe while in North America, strictness and competitiveness are the
main issues. Such variations might be understood as basic differences in values in the
business worlds of the two continents, but large differences can also be identified. Within
Europe, for example among the Anglo-Saxon approach, that is nearer to the American model
as discussed above, and the Germanic-Alpine model which includes Scandinavia, is more
inclined towards the relationship approach.

7.5 Core Values

Each culture contains a set of core values imparted or passed on to its members. For example,
individual in one culture may think that being a unique identity is preferable to subordinating
one‘s identity to the group, whereas another group might highlight the qualities of group
membership. In different cases, values are found to be universal in nature. Who does not wish
to have healthy life, world peace or wisdom? However values are found to change with time.
In Japan young people are working tough to accept Western values and behaviours which
describe why the existing fashion for young people is bleached, chalky make-up, blond hair
and a deep tan. Government rules have supported this form of consumer spending. Though,
varying patterns of expenditure have increased feelings of personal freedom between the
younger generations. Currently, they are challenging some of the values found in past, for
illustration, by the rising school drop-out rate, which has increased by 20%. Similarly,
concerns over the consequences of value crisis are also examined in European societies.
Likewise, individuals can doubt what happened to the customary Scandinavian modesty – in
both Sweden and Denmark people are now showing more enthusiasm to share their personal
lives with thousands of other people in either docu-soaps or talk shows of the Big Brother
type.

Sometimes, one must be cautious enough to interpret social events in terms of values. For
instance, a highly successful ad in Japan encouraged breast cancer awareness in people by
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presenting an charming and attractive woman in a sundress portraying glances from men on
the street as a voice-over said, ‗If only women paid as much attention to their breasts as men
do‘. These same advertisements failed in France because according to the Wall Street Journal
a serious disease was promoted with the help of humour talk which was not acceptable by
people of France and hence totally offended. Does this seem like aplausible explanation to
you?

7.6 Value System:

The most important perspective related to study of values stresses that what places culture
apart is the relative significance, or ranking, of these widespread values. This set of rankings
comprises a culture‘s value system. Every culture is categorized by its member‘s support
towards a value system. These end-states might not be evenly approved by everyone, and in
various cases values might even appear to disagree with one another for e.g. Westerners in
common emerge to value both individuality and conformity and try to find out some
accommodation among the two. However, it is generally probable to recognize a universal set
of core values which distinctively describe a culture. These beliefs are taught to us by
socialization mediators, like friends, teachers and parents. The procedure of learning the
behaviours and beliefs authorized by one‘s own culture is expressed as enculturation while
the process which deals with learning the value system beliefs and behaviours of another
culture is called acculturation. For instances, often a priority is given to those who desire to
know customers and markets in overseas countries.
7.7 Application of Values to consumer:
Being very important, values have not been used widely for straight assessment of customer
behaviour as may be expected. One of the main reasons is broad-based idea which includes
security, freedom or internal harmony and these tend to influence common buying patterns
than to distinguish between brands inside a product category. For this cause, some
researchers have established that it is suitable to make divisions between broad-based cultural
values like happiness or security, consumption-specific values such as convenient shopping
or punctual service, and product-specific values like easiness of use or sturdiness that
influence the relative significance of individuals in diverse cultures put on assets. Though,
this type of distinction might limit on mistreatment of the value concept, while it is usually
occupied to signify the most wide-ranging and thoughtful stage in the social psychological
hierarchy.
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While a number of features of brand figure such as sophistication likely to be regular across
cultures, others tend to be applicable in specific places. The trait of peacefulness is valued to
a larger area in Japan, whereas the same grasp right for enthusiasm in Spain and roughness in
the USA. Since values drive much of customer performance, we can say that almost all buyer
research is eventually related to the recognition and measurement of values. This process can
acquire several forms, ranging from qualitative study methods like ethnography to
quantitative procedures such as laboratory tests and also large-scale surveys. Many
companies keep a record of changes in values by large-scale surveys. For example, one
Rubicam and Young study tracked the novel section of single, professional career women
with no desire of make a family. They are among the highest consuming sector and are
categorized by inner values such as independence and freedom.
Many companies use these value records in order to acclimatize their strategies. One of the
airline, SAS, addressed for a long time regarding ‗hard values‘ of their key section, business
travellers, recognized that this segment had started to convey more unofficial and ‗softer‘
values and have transformed their communication profile consequently. These facts are
imitated in a modern theory of customer value. This theory states that ―value for a consumer
is the consumer‘s assessment of a customer object in terms of general benefits the customer
may get by consuming it. As such, the value at risk in consumption is fixed much more to the
money spending knowledge than to common existential values of the individuals.
Thus, it is recommended that the customer understanding may generate eight types of
consumer values:

1. Efficiency – it refers to all products or goods designed to provide different kinds of

convenience for the customer.
2. Excellence – addressing about situations where the skill and experience of class is
the main inspiration.
3. Status – when the customer follows success and gets engaged in impression
management and eye-catching consumption.
4. Self-Esteem – condition where the satisfaction of possessing is in spotlight, as in
the case of materialism.
5. Play– it refers to the value of having fun in consuming.
6. Aesthetics– deals with searching for beauty in one‘s utilization behaviour e.g.,
designer products, fashion or art.
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7. Ethics– referring to inspiration and motivations behind right expenditure choices

e.g. morally or politically.
8. Spirituality– experiencing a magical conversion or holiness in the consumption, as
identified from dedicated collectors.

7.8 Norms

Norms refer to situations for social relations among groups and individuals, for the
construction of society and the dissimilarity between societies and generally for human
behaviour. Norms can be shared customs, rules, and guidelines that rule society and identify
how individuals must act in the company of others. Norms might be valid for all the members
of a society or only to some subsets of the population like teachers, clergy, students, soldiers
in warfare or police officers. Norms conducts peaceful and smooth communications by
recommending expected behaviour in different situations. For examples, handshaking is a
usual or traditional greeting upon meeting someone in the United States while in other
countries, the expected protocol might be to kiss cheeks, place palms together, bow, or
curtsy.

Norms are inclined to be institutionalized and internalized. Mainly social control of persons
through norms is internal and directed by the loads and restraints of cultural teaching.
Individual cultures mainly permit their norms. Sanctions can be rewards for agreement to
norms or penalty for nonconformity. Sanctions can be positive or negative. Positive sanctions
comprises of praise, smiles, rewards, and gestures while negative includes the infliction of
guilt, citations, fines, condemnation, and imprisonment. There is a specific difference and
peculiarity between values and norms. Values are single or, in some cases, they can be
usually shared ideas of desirable states of being. Norms are normally acknowledged or
accepted instructions for or prohibitions against belief, behaviour, or feeling. Values can be
understood by any person whereas norms cannot and should be defended by a group. Norms
always comprises of approval or sanctions but values certainly not. Norms mainly tend to be
based on and affected by universal values and they likely to continue even after the causes for
definite behaviours are forgotten. For instance, the custom or habit of shaking hands while
meeting any person has its origin in the practice of enlightening that the right hand did not
hide a weapon.
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7.9. Types of Norms:

According to sociologists norms can be divided into four types:

 Folkways
 Mores
 Taboos
 Laws

These norms are graded from least restrictive to most compulsory.

1. Folkways represent norms that guard common conventions. Lots of people in a

society pursue traditional folkways though failure to conform to them is found to be
neither illegal nor immoral. For example, common folkways established in the United
States include having turkey for dinner on the day of Thanksgiving or trimming ones lawn.
2. Mores refer to stronger norms with related moral values. Examples include mores
originated in the United States include prevention against multiple spouses, murder, or
violation of religious symbols.
3. Taboos denote the strongest kind of mores. It includes the belief that certain activities
like cannibalism, are outside the limits of cultural acceptance. Desecration of mores and
taboos found to be treated with strong social condemnation or criminal penalty.
4. Laws refer to the mores which are officially forced by political power and supported
by the power of the state. Laws may implement norms or efforts to change them.
Examples of laws that worked to alter active norms comprise civil rights legislation of the
1950s and the liquor prohibition laws of the 1920s.

Eventually, social norms play important role, as they facilitate individuals to have consent on
a shared explanation of the social situation and thereby avoid harmful social interactions.
When any person misbehaves against existing norms, they get engaged in a norm violation.
Norm violations refer to private or public illustrations of transgression and deviance from
culturally-sanctioned behaviours (Kiesler, 1967).

7.10 Characteristics and Affect on Consumer Behaviour:

1. Regional, Ethnic, and Religious Influences on Consumer Behaviour

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The three key features of culture which showed important effects on consumer behaviour are
regional, ethnic and religious differences. Firstly, consumption or buying patterns may vary
in different regions of India and the whole world, and different marketing strategies can
occasionally be modified or tailored exclusively to these regions. Secondly, in India there are
different ethnic groups, in which population trends will considerably change the demographic
profile of the country in the next 50 years. For example, the very diverse Asian-American
subculture is explained as young and possesses higher socio-economic status, which place
strong value on the family and the group. These are strongly loyal to brand, and this diversity
led marketers to form various strategies for this group. Thirdly, religious beliefs and values
can affect or influence customer behaviour.
Many marketers are currently turning to be multicultural in planning their marketing
activities by trying to attract a diversity of cultures at the same time. Although the variety
present in Indian melting pot can be unique, as it consists of various important ethnic groups
in other areas of the world.

2. Age, Gender, and Household Influences on Consumer Behaviour

Among all the four main age groups, Teens, who need to create an identity for their selves,
are the customers of tomorrow and show an increasing affect on family decisions. Rather,
disheartened Generation X mainly consists of pessimistic and smart consumers who can
effortlessly perceive through clear marketing efforts. Baby boomers develop in a very vibrant
or dynamic and fast-changing world, which affected their values for individualism and
freedom. The 50 aged people and older segment can be divided into two main groups- the
young again and the gray market. Both groups are likely to be thought as old. Gender
differences also showed drastic effect on consumer behaviours as present women are
becoming more independent and professional while men are becoming more caring and
sensitive. Moreover, men and women can also differ in terms of information processing,
traits, consumption patterns and decision styles. Gender influences purchaser preferences and
values as it is consistent throughout lifetime and also showed different consumption or
utilization patterns and observation of consumption situations like in a wedding ceremony.
Households play an important role in consumer behaviours. The section of non-traditional
households has very much increased due to certain factors like,
(1) Late marriages
(2) Cohabitation
(3) Dual-career families
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(4) Increased rate of divorce

(5) Less number of children

Households found to exert significant influence on acquisition and utilization patterns.

Firstly, household members can play various roles in the decision making like influencer,
gatekeeper, buyer, decider and user). Secondly, wives and husbands show varied influence in
on decision process, mainly dependent on the situations such as wife-dominance, husband
dominance, autonomic or syncratic.

3. Psychographics: Values, Personality and Lifestyles:

The different roles of psychographics which influence any customer behaviour are described
below. Values are permanent beliefs regarding belongings that are very important. Values
are learned by the processes of acculturation and socialization. Our values exist in an ordered
system, having some values which are more important than others. Some values are viewed
as terminal values which imitate desired end states which help in guiding behaviour across
several circumstances. Instrumental values are those values which are required to attain these
desired end states. Other form of value is domain-specific values, which are significant inside
a specified area of activity. Generally western cultures have a tendency to put a relatively
high value on the home, youth, material goods, family and children, hedonism, health, work
and play and technology. Marketers mainly use these tools such as value segmentation to
recognize or identify any consumer groups with common values.
Personality comprises of diverse patterns of tendencies, qualities, behaviours and personal
temperaments that make one individual different from another individual. This approach to
study the personality includes various approaches like:
1. The psychoanalytic approach, that perceives personality evolved from unconscious inner
struggles within the mind at starting levels of development.
2. Trait theories, which take effort to identify a set of personality features that explain and
differentiate various individuals, such as introversion or modesty, extroversion, and
constancy or steadiness.
3. Phenomenological approaches suggest that personality is formed by an individual‗s
understanding of various life events.
4. Social-psychological theories generally focus on how individuals perform in social
situations like compliant, detached, or aggressive.
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5. Behavioural approaches observe an individual‗s personality in terms of past rewards and

punishments.
Marketers also quantify lifestyles, which describe different patterns of behaviour, activities,
interests or opinions. These lifestyles help in providing some extra insight into consumer‘s
consumption patterns. Sometimes market researchers employ various Psychographic
techniques that include all factors required to predict behaviour of any consumer. One of the
mainly used and well known Psychographic tools is Values and Lifestyle Survey (VALS).
The newer version VALS2 recognizes eight divisions of customers which are similar in their
self-orientations and resources.

Check your progress: 1

i) ___________________is a complete assessment of the nature and character of the total
society like knowledge, laws, language, religion, music, art, technology, work patterns, food
customs, products and many other artefacts that provide society a unique essence.
ii) Culture consists of __________________that connect together all the members of the
society.
iii) ___________________can be explained as a faith or beliefs regarding several desirable
end-states to excel particular situations and directs selection of behaviour.

7.11 Sub culture:

Sub culture means distinguishing people on the basis of nationality like Indian; religion like
Hindu, Muslim, Christian; geographic region like Maharashtra, Bihar, Karnataka; race like
Brahmin, Kshitriya, Shudra; age includes child, teenager, senior citizen; gender such as male
and female; occupation like bus driver, mechanic, engineer; social class like lower class;
middle class, upper class; ethnicity which can be people with similar customs and values.

A subculture is an important cultural model or patterning method that conserve vital features
of the dominant society however does not provided for norms, values and behaviours of its
own. Marketers generally use this subcultural classification of customers to help in
determining goods and services required. All countries around the globe are made up of
mixture of different subcultures and it becomes essential for marketers to understand this.

Subcultures are characteristically based on mixture of different factors or a single factor.

Some of the main and basic factors for subcultural variation include (1) nationality comprises
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of Swedish, Mexican, Tahitian, Japanese and so on (2) ethnicity which can be Zulu, Basque,
Georgian, Croat, Cajun etc. (3) age including teens, baby boomers, Generation Xers and
Yers, seniors (4) geographic region like Nile valley, Dixie, the Ruhr, Cappadocia and
(5) religion which includes Jewish, Amish, Buddhist, Muslim, Catholic etc. other factors
which are less obvious for subculture formation includes different reference groups which are
further based on family or household type, gender, community type, occupation or income
level. Individual customers normally fit in multiple subcultures. Though our strongest and
most important affiliation can be our nationality and other factors like age, religion etc.
influences or affects our attitudes and our behaviours as clients.
Various benefits or profits which consumers get in the market differ from subculture to
subculture and this diversity in subcultures directs marketers to build up many mixes of
products and to endorse them in different ways. Marketers expect various strategies derived
from subculture behaviours like where the products are sold, how information regarding them
is circulated, and also the way by which consumers are treated by marketers. Since, it is one
more main issue to think or understand the consumer behaviour; subcultural influences earn a
special consideration by marketers as they aim and serve consumers.

7.12 Types of Sub Cultures

There are various subcultures and are divided into a variety of factors such as Age, Region,
Gender, Social Class

1) Age Sub-cultures: Generally consumers suffer expected alterations in lifestyles, values

and expenditure patterns during their life cycle. Four major age trends includes baby, youth,
middle aged and elderly stage, customer performance vary accordingly with change in age
trend.

2) Regional Sub-cultures: Regional subculture follows those customs which are practiced in
different states of a country. People comprises of diverse lifestyles due to variations in
culture, climate and mixture of ethnic people, therefore various product preferences exist.

3) Gender Sub-culture: This type of subculture is based on gender i.e. male-female division.
The requirements and desires of men and women differ from each other to a greater extent
and on this basis their buying habits also differ.

4) Social Class: Human societies are socially or publically stratified and the part played by
various individuals is appreciated differently. Differentiation among roles and their
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comparative estimation leads to stratification of society. Social classes are simply recognized
market sections which can be reached with relative effortlessness while they comprise of
characteristically distinct media habits. Customer behaviour generally varies with the change
in the social class.

7.13 Cross cultural consumer behaviour

Cross-cultural consumer nature is explained as the attempt to find out to what level the
customers of two or more than two countries are similar or dissimilar. This will make easy
for marketers to know the cultural psychological and social characteristic of overseas
consumers they desire to target. This will help to design effective and useful marketing
policies for each of the particular national markets involved.

A company can enter a foreign market as a

 Domestic exporter

 Foreign importer

 Foreign government-solicit firm to sell abroad

The firm„s objectives could be:

 To study how customers in two or more than two societies similar or differ from each
other and create appropriate and suitable strategies
 Develop individualized marketing schemes or strategies if values, cultural beliefs and
traditions of a specific country are different.

Activity: 2
Being a marketing manager, what strategies you would formulate in order to sell your
products in cross cultures? Explain with examples.
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___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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_________________________________________________________

7.14 Characteristic Features of Firm Going Global:

1. Huge market share in the domestic areas

2. Beneficial economies of scale

3. Way to manufacturing or marketing bases across international limits

4. Accessibility of resources and potential to take up big losses

5. Product/technology clout

6. Cost and differentiation advantages

7.15 Problems in Cross Cultural Marketing:

1. Problems related to product selection: The marketer before doing cross cultural
advertising has to choose the consumers or market not on the basis of the superficial
comparison of age or income, but by employing the true motivating features that on time
help them to approve or reject products.

2. Problems related to promotion/marketing communication: e.g. Pepsi and Ariel in the

Middle East.

3. Problems related to pricing: The marketer has to alter his pricing guidelines according
to the general financial environment and traditions.
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4. Problems related to selection of distribution channels: P & G are used to sell soap in
Japan.

Check your progress: 2

iv) ____________________means distinguishing people on the basis of nationality like
Indian; religion like Hindu, Muslim, Christian; geographic region like Maharashtra, Bihar,
Karnataka; race like Brahmin, Kshitriya, Shudra; age includes child, teenager, senior citizen;
gender such as male and female; occupation like bus driver, mechanic, engineer; social class
like lower class; middle class, upper class; ethnicity which can be people with similar
customs and values.

v) Cross-cultural consumer nature is explained as the attempt to find out to what level the
customers of two or more than two countries are ______________________.

7.16. Summary:
Consumer performance generally deals with the study of selling nature of customers. This
behaviour assists to understand or know why and why not any person buys goods and
services from the market. Culture is a complete assessment of the nature and character of the
total society like knowledge, laws, language, religion, music, art, technology, work patterns,
food customs, products and many other artefacts that provide society a unique essence. In
other words, culture represents society‘s personality. Culture includes learned beliefs, values
and customs that help to direct the customer nature of members of a particular society. The
study of culture cover all the characteristic features of a society such as its religion, language,
laws, customs, knowledge, traditions, technology, music, art, work patterns, products and so
on. All these aspects form a unique, distinctive personality of each society. There are
different types of culture: national, popular, sub, corporate culture. value can be explained as
a faith or beliefs regarding several desirable end-states to excel particular situations and
directs selection of behaviour. Therefore, values are general or very common and dissimilar
from attitudes as they are not applied to specific situations only. It is believed that an
individual‘s set of values plays an important role in his or her utilization or consumption
behaviours, as many products/goods and services are procured because they will aid us to
achieve a value-related goal. Values affect both individual and group performances. Various
sociologists worked on the mechanism or methods through which values inspire, motivate
 P a g e | 107

and influence action in and by society. Norms refer to situations for social relations among
groups and individuals, for the construction of society and the dissimilarity between societies
and generally for human behaviour. Norms can be shared customs, rules, and guidelines that
rule society and identify how individuals must act in the company of others. Norms might be
valid for all the members of a society or only to some subsets of the population like teachers,
clergy, students, soldiers in warfare or police officers. Sub culture means distinguishing
people on the basis of nationality like Indian; religion like Hindu, Muslim, Christian;
geographic region like Maharashtra, Bihar, Karnataka; race like Brahmin, Kshitriya, Shudra;
age includes child, teenager, senior citizen; gender such as male and female; occupation like
bus driver, mechanic, engineer; social class like lower class; middle class, upper class;
ethnicity which can be people with similar customs and values. Cross-cultural consumer
nature is explained as the attempt to find out to what level the customers of two or more than
two countries are similar or dissimilar. This will make easy for marketers to know the cultural
psychological and social characteristic of overseas consumers they desire to target. This will
help to design effective and useful marketing policies for each of the particular national
markets involved.

7.17. Answers to check your progress:

i) ( Culture)
ii) ( group traditions)
iii) ( value)
iv) ( Sub culture)

v) (similar or dissimilar)

7.18. References:
Abelson, R.P., Frey, K.P., & Gregg, A.P. (2004). Experiments with people: Revelations from
social psychology. Mahwah, NJ: Lawrence Erlbaum Associates.

Lefkowitz, J. (2003). Ethics and values in industrial-organizational psychology. Mahwah, NJ:

Lawrence Erlbaum Associates.

Pennington, D.C., Gillen, K., & Hill, P. (2004). Social psychology. London: Arnold, Hodder
Headline Group.
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Appelbaum, R. P., Carr, D., Duneir, M., Giddens, A. (2009). Conformity, Deviance, and
Crime. Introduction to Sociology, New York, NY: W. W. Norton & Company, Inc., p. 173.

Becker, H. S. (1982). Culture: A Sociological View, Yale Review, 71(4), 513–527.

Bicchieri, C. (2006). The Grammar of Society: The Nature and Dynamics of Social Norms,
New York: Cambridge University Press.
Hochschild, A. (1989). "The Economy of Gratitude," In D.D. Franks & E.D.

McCarthy (Eds.), The Sociology of Emotions: Original Essays and Research Papers,
Greenwich, CT: JAI Press.

Horne, C. (2001). "Social Norms". In M. Hechter & K. Opp (Eds.), New York, NY: Russell
Sage Foundation.

Kahneman, D. & Miller, D.T. (1986). "Norm Theory: Comparing reality to its alternatives".
Psychological Review, 80, 136–153.

Kollock, P. (1994). "The emergence of exchange structures: An experimental study of

uncertainty, commitment, and trust". American Journal of Sociology, 100(2), 313–45.
Lamy, Pascal, WTO Director-General, Speech to the European University Institute in
Florence on 19 February 2011 (http://www.wto.org/english/news_e/sppl_e/sppl187_e.htm)

Lynn R. Kahle, Pierre Valette-Florence (2012). Marketplace Lifestyles in an Age of Social

Media. New York: M.E. Sharpe, Inc. ISBN 978-0-7656-2561-8.

7.19. Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education
2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning
5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books
6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.
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7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.
8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

7.20. Model and terminal questions:

Q1:Explain the concept of culture. Give its main characteristics.

Q2:Give a detailed account of values?
Q3:What are norms? What are its various types?
Q4:What is sub culture? What are its types?
Q5: What are cross cultural consumers. give a detailed account.

7.21 Glossary:

 Performance: the action or progress of performing a task

 Ambiguity: more than one interpretation
 Curtsy: formal greeting made by bending knees for a girl or woman
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LESSON: 8
Personal Influence and Opinion Leadership

Structure:
8.0 Objectives
8.1 Introduction
8.2 Definitions
8.3 Nature of opinion leadership
8.4 Process of opinion leadership
8.5 Profile of opinion leader
8.6 Characteristics of opinion leader
8.7 Opinion leader vs. other consumer types
8.8 Types of opinion leader
8.9 Methods to identify opinion leader
8.10 Opinion leadership and firms promotional strategy
8.11 Summary
8.12 Answers to check your progress
8.13 References
8.14 Suggested readings
8.15 Model and terminal questions
8.16 Glossary

8.0 Objectives:
After reading this lesson, you will be able to:
 Explain the concept of opinion leadership
 Discuss the profile of an opinion leader
 List the types of opinion leaders
 Enumerate the methods to identify opinion leader

8.1 Introduction:
A person would like to have an expert opinion over the products and services he wants to
buy. If a person decides to buy a new car, he is most likely to ask from a friend who is an
expert in automobiles. If you have some other friend, who is quite reputed for his style. You
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may ask for his assistance while you plan to buy new clothes. Such a person is called an
opinion leader.

Opinion leadership have a major influence on the brand‘s name in a market place. Sports
market is one such example, where opinions are shaped by the use of celebrity endorsements
and sponsorships. America based sports drink company named Gatorade used opinion
leadership to enter into the markets of Britain. They used the strategy of sponsoring various
sports events, but didn‘t had any major promotion of the brand. Use of such a strategy
generated curiosity in the minds of customers and that resulted in generating a lot of opinions
by opinion leaders regarding the product.

According to some researchers, opinion leadership should be observed as a continuous

variable, although it is focused to provide information to only a small number of individuals
on a specific area. ―Although this position has been well established, most of the research on
opinion leadership has used the dichotomy of leaders and non-leaders because the operational
measures of opinion leadership precluded its treatment as a continuous variable‖ (Charles, K.
1970). Earlier literature shows us about a wide range of research on interpersonal
communication and its effect on different disciplines. ―A concern for the impact of informal
or word-of-mouth communication has emerged as a strong interest area within the domain of
consumer behaviour research‖ (Schiffman, L., & Gaccione, V. 1974). Considerable literature
exists, that supports the identification of opinion leaders in diverse conditions, however,
there is lack of literature availability, that could ascertain the ways in which opinion leaders
formulate the opinion of non-leaders.

8.2. Definitions: Opinion leaders

There are various definitions of opinion leadership. Some of them are mentioned below:
Cosmas, C., & Sheth, J. (1980) defines opinion leader as ―someone whose opinions are
highly respected and utilized by the respondents to help in making decision across a variety
of situations such as what types of clothes to wear, where to have major household items
repaired, how to discipline children, can be someone with whom the respondents have
personal contacts (a friend, priest, member of social group, relative, or someone in public life
whose advice is derived from his/her public statements)‖.
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Burt, R. (1999) says that ―opinion leaders are more precisely opinion brokers who carry
information across the social boundaries between groups. They are not people at the top of
things so much as people at the edge of things, not leaders within groups so much as brokers
between groups‖.

Corey, L. (1971) defines opinion leaders as "trusted and informed people who exist in
virtually all primary groups." And additionally explains that ―they are "models" of opinion,
they can be major influencers on marketing effort through word-of-mouth communication to
circles of relatives, friends, and acquaintances‖.

Glock and Nicosia say that opinion leaders "act not only as channels of information but also
as a source of social pressure toward a particular choice, and of social support to reinforce
that choice once it has been made."

Berelson and Steiner describe opinion leaders as "those trusted and informed people who
exist in virtually all primary groups, who are the 'models' for opinion within their group, who
listen and read in the media, and who then pass on information and influence to their circle of
relatives, friends and acquaintances."

8.3. The nature of opinion leadership

All of us have certain links with such people, who stay up to date with surroundings and have
an expert knowledge about various products and services. Before making some important
purchase, people like to take suggestions from such experts, and their suggestions are well
followed. These experts are called opinion leaders. These individuals are very effective in
changing attitudes and behaviour of other people. They have an expert view, so their
suggestions are considered to be more accurate.

They are considered to be an important source of information due to following reasons:

● Opinion leaders are technical experts/professionals in their field, therefore have the power
to influence others easily.

● Opinion leaders are very unbiased. They don‘t act like endorsers, who act to represents the
concern of a single side only. They are reliable source of information as they have no ―axe to
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grind‖. They are well known and publically very active. They are appointed at main positions
in community offices and clubs and play a very active role for the welfare of society. All
these features leads them to have reasonable power in social standings.

● Opinion leaders are a part of our society. They are similar to other consumers in their
values and beliefs, so it is easy for other consumers to believe them when they refer to
something. It is important to notice that, may be pinion leaders have a special place in a
society due to their expertise in a product class, but they are not something extra ordinary
compared to other consumers. They are considered to be homophilious and not
heterophilious.
Homophily: it is a term used define the amount of similarity in terms of education, ethics,
opinions, and social status. Opinion leaders have a little bit higher education and expertise
than those who get influenced by them, but they are not something extremely different.

● Opinion leaders bears maximum risk by being the first one to purchase a product or
service. This act gives them an experience of the product. Every consumer is not brave
enough to purchase a product without consulting others, so here opinion leaders role comes
into act. They share their experiences with others and suggests them to purchase or not to
purchase the product. Company‘s paid ads and other forms of communication entirely
emphases only the plus points of a product, whereas, an opinion leader gives unbiased
information regarding positive as well as negative aspects of a product.

8.4. Process of opinion leadership:

It is a process by which an individual informally tries to shape the decision making behaviour
of others. Here individual represents an opinion leader and others represent opinion seekers.
This process is very dynamic in nature. They give an informal advice about a product,
service or a brand. They initially purchase products and then experience them in or to provide
an expert advice. Several definitions on opinion leadership have been presented and most of
them talks about stresses on informal influence and this informal influence is created by the
use of word of mouth communication. It is quite common in an informal word of mouth
between two parties that one party offers advice and other party seeks advice on some
particular product or service.
During the development of this concept, researchers assumed that technically expert and
experienced people will have an impact over the attitudes of other community members. As
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the researchers moved on, they started questioning the concept of generalised opinion leader.
A generalised opinion leader is a person who has knowledge of all fields and his opinion is
sought before making any purchase. To be an expert of number of fields is not possible for
everyone. Sociologists differentiate between monomorphic and polymorphic; monomorphic
is an expert in a limited fields whereas polymorphic is an expert in variety of fields. A
research conducted on opinion leaders revealed that even if an opinion leader is polymorphic,
his expertise would exist in some related fields, for example: an opinion leader for
motorcycles, also having expertise in small cars. There are very less chances of an opinion
leader being an expert in unrelated fields. For example, an opinion leader of cosmetics may
also have expertise of clothing‘s, but not necessarily have an expertise of sports items.

8.5. Profile of an opinion leader:

Opinion leaders are inspired to provide necessary suggestions to others and such acts
improves their importance and image in society. Such an advice is very successful in
reducing post purchase dissonance of consumers.

Marketers have various methods to identify opinion leaders such as, sociometric method,
self-designation method, key informant method and objective method.

Several studies show that this is a product specific phenomenon, usually the product category
is one of interest. An opinion leader is expert in some specific product category, so he may be
an opinion seeker for some other product category.

Opinion leaders are very sociable and full of confidence with risk taking abilities. They are
very extrovert and like to talk to others. They are marginally different from other consumers.

They gather information about their area of specialisation through different sources like
internet, magazines etc. they may have interest in some other areas too, so their leadership
abilities may cover some other areas too.

The market maven

Some customers are expert in some kind of product category but may not be interested in
suggesting others about it. On the other hand, some consumers are very much interested in
communicating information of all types in market place to customers, such consumers are
called market maven. It is not necessary that they are interested in some single product
category and even, they may not be the first one to buy a product but they enjoy shopping and
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keep a clear view of different happenings in the market place. Market mavens are a sort of
generalised opinion leaders, as they have a very clear information of different product
categories and from where to obtain them.

The surrogate consumer

An individual kept to deliver input to buying decisions is called a surrogate consumer.
Surrogate consumers are paid for making others opinions whereas an opinion leader and
market maven are not paid anything. Some examples of surrogate consumer includes Interior
designers, brokers or professional shoppers etc.. Surrogate consumer‘s advice have a very
deep influence over the purchase decision of a consumer. Actually, they are the one, who
purchase on behalf of the consumers, For example, a designer may get commission for
decorating a client‘s home, or a stock broker entrusted with the power to invest on the behalf
of an investor.

8.6. Characteristics of an Opinion Leaders:

Some of the key characteristics of an opinion leader are:
1. Opinion leaders are highly reliable sources of product related information. Those
individuals, who are have an expert opinion in a field is known as an opinion leader. Their
opinion is based mostly on experience they gather by using a product or a service.

2. Opinion leaders are social people and also have a lot of knowledge: They are among
the first ones to buy a product and experience every product by using them. As, their
suggestions are based on their first-hand knowledge of a product or service, therefore opinion
seekers have lot of trust in their advices. They are considered to be very sociable in nature, so
people even like to communicate with them.

3. Opinion leaders are not biased, they present positive and negative aspects of a
product or service in an unbiased manner: This quality makes an opinion leader a very
reliable person and consumers have full credibility to them and opinion seekers are very
confident about the information receipt from them.

4. They act as a reliable and constant source of information and always have an expert
opinion about the concerned area of expertise.
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5. They are well renowned in media for the area of their expertise.

6. They are inclined to be innovative consumers.

7. some of their characteristics like demography, personality traits, and social status have an
impact on the area of their expertise.

8.7. Opinion leaders vs. other consumer types

Initially, it was assumed that opinion leadership is a static process i.e., he gathers information
from various types of media and transfers it to opinion seekers. But, with the advent of time,
this opinion looked quite simplified. Researchers has proved this with evidence that both
opinion leaders as well as opinion seekers, both are influenced with each other. It means an
opinion leader has a direct influence of responses of opinion seekers. It is not always that
opinion leaders themselves are the purchasers of the same product on which they are giving
their recommendations. Innovators is a term used for early purchasers and those opinion
leaders, who make early purchases are known as innovative communicators. A research was
conducted in a university in order to identify various characteristics of an innovative
communicator. The sample consisted of only those male students, who were early purchasers
of fashion products and other students seek their suggestions before the purchase of fashion
products.

Following were the other characteristics of students, who were innovative communicators:
● They were publicly very active.
● They were look-conscious and self-important (i.e., being self-centred).
● They liked rock culture.
● They loved to read magazine.
● They had latest designer clothing.
● They had very few interests.

Opinion leaders can also be an opinion seekers. They continuously seek information about
the product category in which they are an expert. So they talk to other people about the same
product category and ask about their opinions. It has been noted that most of the product
related conversation does not occur formally in form of lecture but it takes place in informal
and casual ways
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8.8. Types of opinion leaders:

Marketers are very interested in opinion leaders, as they are considered to have a deep
influence on the purchase decisions of other consumers in a given product category. Many
marketing ads are specifically made to influence opinion leaders. These ads are not intended
for average consumers, as they contain lot of technical information.
a) Professional opinion leaders
Finding such people, who get paid for giving their experienced suggestions is the simplest
method of finding opinion leaders. Those people, who obtain information about their
specialised field from various sources such as journals or other magazines etc. is called a
professional opinion leader. Example of professional opinion leader includes a doctor, an
engineer, scientist etc.. Marketers try to fulfil the wishes of a professional opinion leader in
hope that, it will make them happy and they may recommend marketers products to other
consumers.

A case has been given;

An European brand entered into the profitable market of USA in skin care products. They
decided not to compete head to head with other companies, but used some other strategies.
Instead of facing excessive advertisements of existing companies, they thought to win over
various chemists and skin specialist doctors. It was in 1994, that they started giving their ads
in some medical journals, and their products were distributed to various chemists and
dermatologists. They started a free calling number, on which interested customers could call
and get the information regarding the availability of medicine. Such strategies could backfire
easily. Such strategy also poses question mark on the reliability of an opinion leader.

b) Consumer opinion leaders

as we already know, most of the opinion leaders are a part of regular consumers, so, it is very
difficult to find them. On the other hand, it is quite easy to locate an endorser or some
industrialist. Such people are well known in a particular area or a nation and have an
influence over majority of people. Well, talking about consumer opinion leaders, they are
operational at a local levels only and have influence over very few people in that market
place.
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Marketers make a lot of efforts to identify opinion leaders in order to include them in
company‘s marketing efforts, which results in creating a ―ripple effect‖ as these consumer
opinion leaders indulge directly in appreciating a brand or a product.
As marketers find it quite difficult to find a particular opinion leaders in a market place, so
they concentrate on empirical studies alternatively, where they try to identify the features of a
representative opinion leader and later on could be generalised to a large market. Such a
study is very helpful to marketers in deciding the type of information to be communicated
through the use of appropriate media. For example: a company conducted a research to
identify the characteristics of an opinion leaders in financial sector. They found that such
consumers are interested in handling their finances with the use of a computer. They kept
their eyes on their investments every day and they were interested in reading books and
watching TV shows related to financial matters.
Check your progress: 1
i) _____________________have a major influence on the brand‘s name in a market place.

ii) _______________is a term used define the amount of similarity in terms of education,
ethics, opinions, and social status.

iii) Opinion leaders bears maximum_____________________ by being the first one to

purchase a product or service.

8.9. Methods to identify opinion leaders:

There are two main methods to identify an opinion leader. They are:

i) The self-designating method

This is one of the most simplest and frequently use method to find opinion leaders. In this
method, consumers are directly asked, if they consider them opinion leaders.

Though, this method has lot of short comings. Those consumers who expressed lot of interest
in a product category are probable opinion leaders, but such surveys conducted to find
opinion leaders may present some doubtful results. Some consumers may be faking with their
prominence and influence over others and may be providing an inflated personality. Some
people may have an importance and influence in a market place, but they may not be
conscious about it or might not admit such quality. It is not important that the suggestions
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communicated by an opinion leader are accepted by consumers. But a real opinion leader is
one, whose suggestions and advices are listened and followed by other consumers. A
substitute to this method is to choose a group of individuals, who could find an opinion
leader. Successfully finding an opinion leader with this method solely depends on the
knowledge and unbiased views of selected people.
A self-designated method is not considered to be an efficient method of finding opinion
leader, but, a systematic analysis method is more appropriate and reliable in finding an
opinion leader. In systematic analysis, consumers are asked about the influence of a person in
a market. So there are very less chances of getting impressed from a person displaying
inflated image. But, this method has a disadvantage, that it is quite difficult to survey the
whole community for information.

ii) Sociometry
This is an internet-based method centred on the famous play of ―Six degrees of separation‖.
The main idea of this play is that every individual on this planet are parted by six other
people. Website named (www.sixdegrees.com) permits an individual to register with the site
and provide information about other people, with their names, addresses and emails. It
allows an individual to contact a listed person in the database.

This website acts as a digitalised form of various sociometric methods, that acts a medium
of communication between various group members and let researchers examine these
interactions. Researchers conduct online interviews of group members and ask them about
whom they consult for product information before making a purchase. In this way,
researchers can identify opinion leaders in various groups.
This technique of finding opinion leaders is very accurate, but is very expensive in terms of
cost and time. It involves very deep study of interaction between different group members.
This technique is very much applicable and successful in closed and self-contained settings
like army camp, or hospitals or jail etc. where the members of the group don‘t have
accessibility to other societal networks.

Marketers ability to generate business depends mainly on word of mouth(WOM). It is very

common that a consumer refers a product or service to his/her friends, co- workers etc. or a
company recommending their products and services to customers. It has been found in a
research that due to the effect of advertising, only 0.2 percent of customers visited a
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physician. Recommendation from various friends and family members is considered to have
more impact on decision making.
.
This method is useful to understand an opinion leader‘s referral powers and finding their key
strengths and weaknesses in influencing others in regard to their social standings in a society.
Researchers analyse group communication in order to find the group leaders and their
abilities to influence others. They also measure the strength of relationship between different
group members I.e., tie strength. Tie strength could range between strong primary (eg.
Married couples) to weak secondary( eg: rarely seen friend). If the tie relationship between
different members of group are very strong, then it is considered to be a primary reference
group.

Strong ties between these group members are very important and weak ties play a linking
function between the group. Such strong connections between group members allow an
individual to contact with a sub group. Take an example, a consumer, who is a primary
member of one group likes cricket. Some other group member can help you in introducing his
friend‘s group, who professionally play cricket and practise daily at a cricket club. In this
way, you can get in contact with such people who are experts in their field.

iii) The key informant method:

This method is based on close surveillance and examination of social media. By examining
various chats, important informers are identified. Later on, these informers are communicated
and requested to find opinion leaders in the group or such individuals who are most expected
to be one.

Advantage of this method is that, it is comparatively less expensive than sociometric method.
Drawback of this method is that, if selected a the wrong informer, it could lead to wrong
information.

iv) The objective method: This is a simulation based method. Opinion leaders are identified
in this process by making people to play the role of such leader in a controlled environment.
Marketers choose individuals, are provided with necessary information and are asked to act
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as an opinion leaders. At last, their influence on other consumers purchase behaviour is

measured.

Advantage of this method is that people try to convince and influence others in a controlled
environment. Disadvantage of this method is that it is very time consuming method and
requires trained psychologists to select individuals.

Activity: 1
Suppose, you are a consumer. how would you find an opinion leader and what are the
chances of that opinion leader to be your friend or family member? Why?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_________________________________________________________________________

Check your progress: 2

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iv) Marketers have various methods to identify opinion leaders such

as_____________________________________________________________.

v) Some consumers are very much interested in communicating information of all types in
market place to customers, such consumers are called________________.

8.10. Opinion leadership and Firms promotional strategy:

Marketers are well aware of the influence of an opinion leader, which could be used to
mould the attitude and purchase behaviour of other consumers. Marketers continuously try to
initiate and encourage informal word of mouth communications about their products and
services. Innovative designers make such products that have the potential to attract word of
mouth. It is important, that a new launched product has such features that have something to
talk about. If a product possess quite unique features and is not able to attract any informal
talks, in such cases, marketers deliberately make attempts to initiate such communications.

Now, let us have a look at how an opinion leader effects a firms promotional strategies:

i) Programs Designed to Stimulate Opinion Leadership:

Various publicity and marketing programs intended to influence consumers to ―tell your
friends how much you like our product‖ is one of the simplest method to initiate consumer
debates of their products or services. The main goal of a marketing is to encouragement such
ads or promotional programs that are exciting and informative to incite consumers to talk
over the benefits of the product with their friends, family members etc..

ii) Advertisements Simulating Opinion Leadership

It is also possible to initiate discussions by the use of such advertisements, which encourage
consumers to talk informally about a product.

iii) Word-of-Mouth May Be Uncontrollable

It is a very difficult task to regulate Informal communication. Negative and untrue rumours
have the potential to damage the image of a product in a market place. A study conducted by
office of consumer affairs in USA found that 90 percent dissatisfied consumers will never do
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business with the same company again. There are plenty of chances that a dissatisfied
consumer will share his complaint with 9 other people and 13 percent unhappy consumers
will share their negative experience with 20 other consumers. In order to destroy the image of
a brand in market place, people use several rumour, such as:
 Production of product under unhygienic surroundings.
 Objectionable materials present in product.
 Cancer-causing components present in product.
 Doubtful over the owner of the firm.

In order to avoid such false and negative rumours, companies provide toll free numbers on
their products. One of the biggest challenge in these days is generation of a negative word of
mouth on internet. If a consumer is dissatisfied, he can easily post about his experiences on
social media sites, where everybody can see his comment

iv) Creation of Opinion Leaders:

Companies can considerably increase their marketing success by dividing their market place
into opinion leaders and seekers. It would be considerably more beneficial for marketers to
have product specific opinion leaders.

Activity: 2
Suppose you are working for an organisation. How would you use an opinion leader to
promote your products?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
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___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_________________________________________________________________

8.11. Summary:
A person would like to have an expert opinion over the products and services he wants to
buy. If a person decides to buy a new car, he is most likely to ask from a friend who is an
expert in automobiles. If you have some other friend, who is quite reputed for his style. You
may ask for his assistance while you plan to buy new clothes. Such a person is called an
opinion leader. According to some researchers, opinion leadership should be observed as a
continuous variable, although it is focused to provide information to only a small number of
individuals on a specific area. Considerable literature exists, that supports the identification of
opinion leaders in diverse conditions, however, there is lack of literature availability, that
could ascertain the ways in which opinion leaders formulate the opinion of non-leaders. All
of us have certain links with such people, who stay up to date with surroundings and have an
expert knowledge about various products and services. Before making some important
purchase, people like to take suggestions from such experts, and their suggestions are well
followed. These experts are called opinion leaders. These individuals are very effective in
changing attitudes and behaviour of other people. They have an expert view, so their
suggestions are considered to be more accurate. Opinion leaders are a part of our society.
They are similar to other consumers in their values and beliefs, so it is easy for other
consumers to believe them when they refer to something. It is important to notice that, may
be opinion leaders have a special place in a society due to their expertise in a product class,
but they are not something extra ordinary compared to other consumers. Opinion leaders
bears maximum risk by being the first one to purchase a product or service. This act gives
them an experience of the product. Every consumer is not brave enough to purchase a product
without consulting others, so here opinion leaders role comes into act. They share their
experiences with others and suggests them to purchase or not to purchase the product. During
the development of this concept, researchers assumed that technically expert and experienced
 P a g e | 125

people will have an impact over the attitudes of other community members. As the
researchers moved on, they started questioning the concept of generalised opinion leader. A
generalised opinion leader is a person who has knowledge of all fields and his opinion is
sought before making any purchase. To be an expert of number of fields is not possible for
everyone. Opinion leaders are inspired to provide necessary suggestions to others and such
acts improves their importance and image in society. Such an advice is very successful in
reducing post purchase dissonance of consumers. Marketers have various methods to identify
opinion leaders such as, sociometric method, self-designation method, key informant method
and objective method. Researchers has proved this with evidence that both opinion leaders as
well as opinion seekers, both are influenced with each other. It means an opinion leader has a
direct influence of responses of opinion seekers. It is not always that opinion leaders
themselves are the purchasers of the same product on which they are giving their
recommendations. Innovators is a term used for early purchasers and those opinion leaders,
who make early purchases are known as innovative communicators. Opinion leaders can also
be an opinion seekers. They continuously seek information about the product category in
which they are an expert. So they talk to other people about the same product category and
ask about their opinions. Marketers are well aware of the influence of an opinion leader,
which could be used to mould the attitude and purchase behaviour of other consumers.
Marketers continuously try to initiate and encourage informal word of mouth
communications about their products and services. Innovative designers make such products
that have the potential to attract word of mouth. It is important, that a new launched product
has such features that have something to talk about. If a product possess quite unique features
and is not able to attract any informal talks, in such cases, marketers deliberately make
attempts to initiate such communications.

8.12. Answers to check your progress:

i) ( Opinion leadership)

ii)( Homophily)

iii) ( risk)

iv) (sociometric method, self-designation method, key informant method and objective
method. )
 P a g e | 126

v) ( market maven)

8.13. References:

Lazarsteld,P.F,Berelson,B.R.,Gaudet,H.(1944). ―The people‘s choice: How they makes up his

mind in a presidential campaign‖. New York: Duell, Solan & pierce Levy,

M.R.(1978). Opinion Leadership and Television New uses. Public Opinion Quarterly, 42,
402-406.

Roger E.M., Cartano, D.G. ―Methods of Measuring Opinion Leadership‖. Opinion Quarterly,
26,435-441, 1962.

Katz, E., Lazarsfeld, P.F. ―Personal influence‖. The part played by people in the flow of mass
communication. Glencoe, III: Free press, 1955.

SubrahmanyamG., Rao, B.Ramakrishna, Rao K RamaMohan, ―Marketing of Consumer

Goods‖, Economic Times, June 28, 1982.

Randolph E. Bucklin, Sunil Gupta, S.Siddarth,―DeterminingSegmentation in Sales Response

across Consumer Purchase Behaviours‖, Journal of Marketing Research, Vol-XXXV, No.2,
May pp 189-197, 1998.

Carl F. Mela, Kamel Jedidi, and Douglas Bowman, ―TheLong-Term Impact of Promotions on
Consumer Stockpiling Behaviour‖, Journal of Marketing Research, Vol-XXXV, No.2, May
pp 250-262, 1998.

B B S Parihar, Sanjay Yadav, Irfan siddiqui, 2007 ―Urban and Rural Consumer Behaviour: A
comparative study with special reference to Consumer Durables‖, The ICFAI Journal of
Consumer Behaviour, Vol. II No.1, March.

Torben Hansen, ―Perspectives on Consumer decision making: an integrated approach‖,

Journal of Consumer Behaviour, Vol 4 issue 6 pages 420-437.
 P a g e | 127

8.14. Suggested readings:

Loudon, D.L. and Bitta A.J. Della, Consumer Behaviour, Fourth Edition, 2002, Tata
McGraw-Hill, New Delhi.

Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.

Schiffman, L.G. and Kanuk, L.L., Consumer Behaviour, Eight Edition, 2004, Prentice Hall,
India.

Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.

Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

8.15. Model and terminal questions:

Q1: explain the concept of opinion leadership in detail.

Q2: explain the profile of an opinion leader in detail.

Q3: what are the various methods to identify opinion leaders?

Q4: what are the effects of opinion leader on firms promotional strategy?

8.16 Glossary :

 Opinion: a view point

 Unbiased: impartial
 Objective: a goal or aim
 Recommendations: suggestion, proposal
 Surrogate: a substitute
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LESSON: 9
Diffusion of Innovations
Structure:
9.0 Objectives
9.1 Introduction
9.2 Diffusion of innovation
9.3 Influence of product category on diffusion
9.4 Adoption process
9.5 Adopting innovation
9.6 Adopter categories
9.7 Types of innovations
9.8 Behavioural demands of innovation
9.9 Profile of consumer innovator
9.10 Summary
9.11 Answers to check your progress
9.12 References
9.13 Suggested readings
9.14 Model and terminal questions
9.15 Glossary

9.0 Objectives:
After reading this lesson, you will be able to:
 Discuss the concept of diffusion of innovation
 List the types of innovations
 Describe the profile of a consumer innovator
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9.1. Introduction:

The process of diffusion is related with the dispersal of innovations i.e., their adaptation in a
market place. Additionally, we can say, diffusion is the process by which the acceptance of
innovation is transmitted by different means of communication (may be through mass media
or sales people) to other members of society.

The definition of diffusion includes four basic elements:

(1) The innovation
(2) Channels of communication
(3) The social system
(4) Time.

It is very difficult to define new product or product innovations in a single definition.

Therefore, this term has been defined by using various approaches. These approaches
include:
Firm oriented definitions
Product oriented definitions
Market oriented definitions
Consumer oriented definitions.
Not all, but a couple of approaches has been presented below.

Firm oriented definitions: This approach examines the novelty of a product from the
viewpoint of the company manufacturing or promoting it. A product is considered to be new,
if it is new to the company. This definition does not explains, if the product is really novel to
the market place. In accordance with this opinion, if a competitor produces a modified
product or duplicate of an existing product would be considered as new. While this definition
has significant advantages when the objective is to observe the effect that the new product
has on the manufacturing company. This definition is not considered very useful while
understanding the consumer approval of a novel product.

Product oriented definitions: Product oriented definition emphases on the inbuilt features
that the product has and their effects on consumers usage. This approach defines the
following types of innovations:
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a. A continuous innovation: This type of innovation has minimum disturbing

influence on the established forms. In this innovation, a modified product is
introduced but not a totally new one. For example, laser printers, Marie lite
biscuits with extra fibres.
b. A dynamically continuous innovation: this type of innovation is bit more
disturbing than a continuous innovation, but still don‘t change the established
forms. It includes making of a new product or alteration of a prevailing product.
for example: DVD players, erasable pens etc.

c. A discontinuous innovation: such innovations which entails consumers to

change their old behaviour patterns and adopt a new one. For example: internet,
mobile phones etc.

9.2. Diffusion of Innovation

All products pass through a life cycle. The first stage in life cycle is introduction. So, in first
step, a new product is introduced in market. As, the product is new in the market, so it is
known to very few people. Due to higher cost at the introduction, it has a very limited sales.
Some products succeed to step to the next stage i.e., growth. In this stage, the sale of product
increases intensely. Now, many firms enter the market with similar products as yours‘. After
this, product reaches in the stage of maturity, where it observes very little growth. For
example: almost every household in India have a two wheeler. Some products after this phase
reaches the stage of decline. The main reason for that is replacement of product with
something superior. For example: replacement of typewriters with computers. The process of
diffusion of innovation innovation is also tangled with product life cycle. In the introduction
phase of a new product, there are more chances of innovators to adopt it first. They take risk
by paying extra price for unused new product. These people serve as opinion leaders for the
society by providing their expert advice to other consumers by experiencing the product
themselves.
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Fig. 9.1

It is important for a firm to modify or change strategies in later stages of product life cycle in
order to survive in market place.

Maximum sales of several firms is in form of novel products. Novel products can be
considered new in some ways.
New to the market: in this case, nobody has seen or made any such product earlier. For
example: Minivan by Chrysler.
New to the firm: in this case, a product has already been invented by some other firm
initially, but now, the firm has started producing its own form. For example: entry of IBM in
computer market.
New to the segment: this can be understood with an example. Mobile phones were initially
introduced to target higher class of customers who were price insensitive, but later on, mass
price sensitive customers were also targeted.
New for legal purposes. As we know, consumers get attracted to ―new and improved‖
product categories, some federal organisations allow to paste a label of reformulation only if
some important changes has been made in the product.

The propensity of new products or services to spread among wide range of consumers is
called diffusion of innovation. At the introductory phase, very less people adopt these
products or services. Later on, they are adopted by other people.
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Fig. 9.2

In the above figure 9.2, bell shaped curve shows the frequency of adoption of a new
product. Maximum percentage of consumers adopting a new product is represented by the
saturation point.

Activity: 1

Suppose you have launched an electronic product in market. What are the strategies
that you would formulate for your product in different phases of product life cycle?

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___________________________________________________________________________
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9.3. Influence of Product Characteristics on diffusion

It depends on the features of the new product, that how quickly it would get adopted. Some
products are adopted immediately; for example, both apple iPod and iPhone were sold at a
very high rate, right from the day of their introduction.
Five features are particularly very vital in influencing rate of adoption. They are:

A. Relative Advantage: it is the degree to which a probable consumers identifies a new

product as superior to prevailing alternatives is called its relative advantage. E.g., mobile
phones

B. Compatibility: The degree to which a possible consumers find newly introduced product
stable with their current wants, ethics, and practices defines its compatibility. E.g., DVD
players
C. Trial ability: as we all know, an new product go with lot of risk and consumers accept a
new product only after experimenting it. Companies often issue free samples in order to
reduce the risk of consumers regarding new products. In this way, consumers can make trials
on samples initially, and if find product up to the mark can adopt it.

D. Complexity: The degree to which a consumer finds new product tough to use defines it
complexity.

E. Operability: simplicity with which a probable consumer can understand product‘s

benefits defines it operability.

9.4. Adoption process:

In the below given figure 9.3, we can see the different stages through which an individual
goes to fulfil a need. Consumers may quickly or slowly shift from one stage to another, or
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they have to turn back in some stages. Buyers may pass quickly or unhurriedly through these
stages, and they may have to reverse back in some stages. All these things are influenced by
the nature of product and surroundings. Let us see, how a consumer reaches purchase
decision. A product is new, if it is perceived to be new by a probable consumer. We can
define adoption process as ―the mental process through which an individual passes from first
learning about an innovation to final adoption,‖ and adoption as ―the decision by an
individual to become a regular user of the product‖.

Stages in the Adoption Process

Every consumers has to step through five stages in order to adopt a new product. These
stages are:

Awareness: in this stage, a consumer gets aware of a new product but does not have the
required knowledge about it.

Interest: in this stage, the consumer starts searching information related to the new product.

Evaluation: in this stage, the consumer thinks, whether he should try the new product or not.

Trial: in this stage, the consumer makes a trial of the new product on i.e., he tries it on trial
basis to make an estimate of the product.

Adoption: in this step, the consumer decides whether to adopt the product for constant use.
This model proposes, how a marketer should aid a consumer to pass through all these steps.
Take example of Hyundai car makers. In the course of the latest recession, Hyundai
formulated a very useful strategy for consumers to get through evaluation stage. Hyundai
found that probably there were so many potential consumers, but due to the worry of losing
their jobs in recession, they were not able to purchase a car. To aid them passing through this
problem, Hyundai offered an assurance program, in which they assured consumers, that
whosoever would purchase their car will get an assurance, that if they lose their job within
one year after the purchase of car, they would take back car from them at no cost with no
harm to their credit ratings. They also provided various other facilities at no extra cost.
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Fig. 9.3

After the launch of this assurance program, sales of the Hyundai Sonata car increased by 85
percent in a single month and they were also able to grow their market share in the following
year at a very rapid pace.

Check your progress: 1

i) The process of _____________________is related with the dispersal of innovations i.e.,
their adaptation in a market place.

ii) ______________________approach examines the novelty of a product from the viewpoint

of the company manufacturing or promoting it.

iii) It depends on the____________________ of the new product, that how quickly it would
get adopted.

9.5. Adopting Innovations:

Any buyers or consumer‘s acceptance or adoption of new invention or product might
resemble the decision-making sequence. Individual go through the different level of
awareness, information search, assessment, testing and acceptance, while the relative
significance of each level or stage may vary depending on how much is previously known
about a product as well as on traditional or cultural factors that may influence people‘s
eagerness to try new things. One of the case study of 11 European countries established that
customers in individualistic traditions are more novel than consumers in group cultures.
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Though, even inside the similar culture, all people did not accept an innovation at the similar
time. Some act so quite quickly, and others certainly not do at all. Customers can be ranked
into estimated group based upon the probability of adopting an innovation. The group of
adopters can be associated to stages of the product lifecycle idea used extensively by
marketing strategists. In the above figures (9.1, 9.2), it can be found that around one-sixth of
the population including innovators and early adopters is very rapid in adopting new
products, and one-sixth of the people including laggards are very slow and the left two-thirds
are somewhere intermediate, and include adopters which represent the mainstream public.
In several cases individuals intentionally remain calm ahead of adopting an innovation as
they presume that its scientific qualities will be enhanced or that its price will go down after it
has been introduced in the market. Keeping in mind, that the percentage of customers falling
into every group is an estimate; the definite volume of each depends upon such reasons as the
complication of the product, its cost and other product linked factors, but probably also differ
from country to country. Even though inventors represent only 2.5 % of the population,
marketers are constantly attracted in identifying them. One of the standard theory states that,
these are the courageous souls who are always careful regarding original growth and will be
the primary to attempt a new offering. Just as generalized opinion leaders do not appear to
exist, innovators tend to be category-specific. An individual who is leader or innovator in
single area might even be a slow in another area like somebody who prides himself on being
at the critical edge of fashion might have no idea of new progress in recording skill and stereo
equipment.
Although this qualification, several generalizations may be accessible about the profile of
innovators. Not unpredictably they are liable to contain more positive approaches towards
risk taking. In American study, people tend to have advanced educational and income levels
and to be publicly energetic while in a European study it was found that clothing and fashion
market, the similar connection among socio-demographic variables and inventive or early
accepting behaviour cannot be found. On the other hand, a Spanish study reveals that, that
innovators are likely to be younger and, more fascinatingly, that promotion and advertisement
would include the major influence on product acceptance in the early years of
commercialization of a product, while word-of-mouth and other non-producer controlled
information turn out to be more vital and important thereafter.

Activity: 2
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Suppose, you introduce a new product to market. What things would you keep in mind to
make consumers to adopt your product immediately?
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_________________________________________________________________

9.6. Adopter Categories:

―Adopter categories‖ deals with the classification system among members of the aimed
section(s) that demonstrate where one customer rise in relation to other customer with respect
to time, that has failed among the introduction of the novel product and service offered and
the acceptance by a consumer. Researchers suggested the classification of consumers in
adopter and non-adopter categories, which have two or three or five class classifications. It is
notable that the customers would be divided based on the nature of the product/good or
service.
According to Roger‘s classification, adopters are classified into five categories based on the
time engaged by them to accept a new product, including innovators, early adopters, early
majority, late majority, and laggards. Based on different studies, it was noted that when these
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five categories were plotted on a graph, lead to formation of bell-shaped normal distribution
curve.
The five categories are described as follows:

a) Innovators: Innovators include 2.5% of the total target market(s) adopters; they include
those consumers who are the first one to go and buy a novel manufactured goods or service
offering. They procure the innovative good/product and service offering not because they
own a need, but they desire new concepts and ideas, and search for product and service
novelty. They have high self-confidence, and are forever keen to attempt out new
products/services. Individuals have full right to get information regarding such innovative
offerings, and are quick to buy; firstly, as they have the inclination and interest to purchase
the ―new‖; and secondly, because they have the buying power and full access. It is significant
to state here, that innovators are not ―generic‖ but they are more ―specific‖ to a product and
service type in most of the cases.

b) Early-adopters: They represent 13.5% of the target market(s) adopters are also known as
early-adopters. These are persons who buy the new product and service offering not due to
fascination towards the ―new‖, but because they own a need. These types usually inclined to
have some thoughts on the product/service category, and after having much more knowledge
regarding the product or brand, they go away to purchase it. These adopters depend on group
norms as well as found to be good opinion leaders, and possibly be easy targets for the
marketer.

c) Early majority: The early majority group is similar to the early adopter as they also
purchase the product or service offering because they have a need and desire to fulfil it; but
they are not as fast as the early adopters are. They took longer time to enter into purchase, as
they do not show much interest in the product or service category. Therefore, the customers
which come under this category have to collect information first, then to evaluate it, further
plan carefully and after that they take a final decision. The early majority consists of next 34
percent of the adopters.

d) Late majority: The next 34 percent of the adopters are known to be the late majority.
They are denoted as ―late,‖ due to some reasons i) members of their reference group, social
class and peer group have already made decisions on the purchase and have strong social
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influence and ii) they themselves have assessed the new novel product and service offerings
and are fully set to buy it. They also own a need and after careful consideration, reflection
and with social influence and pressure, these ―late majority‖ people make the purchase. They
are skeptical and have full authentication to social pressure by nature. The main factor which
has a major role to play is Interpersonal communication.

e) Laggards: The laggards are the last category to approve a new and novel product or its
service offering. They make only 16 percent of the target market. They are mainly slow in
purchasing the inventive offering because, i) they are not involved with the good/product and
service offerings; ii) they do not have much information about the product; iii) they generally
remain unaffected by social pressure, and have less strong social ties; iv) they believe in
creating scheduled purchases and wish to buy the ―familiar‖, than the ―unfamiliar.
9.7. Types of Innovations:
Innovations involves a technical level and occupy several efficient changes, for example, car
air bags, or be of a more vague kind, corresponding to a new social sense like a new hairstyle.
Nevertheless, different to what literature states, both are representative in the sense that one
deals to symbols of technological performance and safety while other refers to less concrete
symbols like individuality and courage. In general both types denote symbols of progress.
New and novel products or service offerings and ideas have features that decide the level to
which they will possibly disperse. Innovations that are more original and new might be less
liable to diffuse, as they need bigger modifications in people‘s lifestyles and thus need more
effort. Most of the inventions are close to be of the ‗me too‘ type, and thus does not
essentially hold qualities that would convince the consumer to move from existing product
types. In any case, it have to be noted out that in spite of having all good knowledge of the
marketing concept to make sure that there is a market prior to the product development, the
malfunction rate of new products is as high as ever, if not higher.

9.8. Behavioural Demands of Innovations:

Innovations can be characterized according to the level which they order for changes in
behaviour from adopters. The three main types of innovation have been recognized, however
these categories are not absolutes. In a relative sense, they refer to the sum of interruption or
change they pass to people‘s lives. An uninterrupted innovation refers to alteration of an
existing product, for example, when a breakfast cereal is launched in a sugar-coated form, or
 P a g e | 140

Levi‘s sponsored ‗shrink-to-fit‘ jeans. These types of changes might be employed to set one
brand away from its competitors.

Generally product innovations are found to be evolutionary and not revolutionary. Little
changes are done to place the product and inserting line extensions merely to ease customer‘s
boredom. Consumers may be attracted to the novel or new product, but acceptance stand for
minor changes only in utilization habits, because innovation probably adds to the product‘s
handiness or to the variety of alternatives available. A typewriter company, for instance,
many years ago personalized the form of its product to make it more users friendly. One easy
transformation was the bending of the clippings of the keys, an assembly that was approved
over on today‘s computer keyboards. One of the causes for this alteration was that secretaries
with extended fingernails had criticized about the complexity of typing on the even surfaces.

A dynamically constant invention is a more distinct modification in an existing product, as

characterized by self-focusing cameras or touch-tone telephones. These types of innovations
have a humble impact on the manner people perform things, producing a few behavioural
changes, although the touch-tone telephone is an appearance of a big innovation which
involved many irregular regenerations of daily life: the digitalization of communication. The
IBM electric typewriter when launched was mainly used as a ‗golf ball‘ rather than single
keys, allowed typists to amend the style of manuscripts just by swapping one ball with other.
An irregular innovation generates major changes in the manner we live. Main inventions, like
an aeroplane, the computer, the car, and television have fundamentally changed current
lifestyles, although, as can be observed from these examples, major alterations generally take
some time from the start of introduction. The private computer has, in many cases, displaced
the typewriter, and it has introduced the phenomenon of ‗telecommuters‘ by permitting many
individuals to work from their homes. Of course, the cycle goes on, as innovative inventions
such as new forms of software are regularly being made; enthusiastically continuous
innovations like the keyboard ‗mouse‘ fight for acceptance; and discontinuous innovation
like wristwatch, personal computers appear on the horizon.

9.9. Profile of a consumer innovator:

Consumer innovators can be explained as moderately small group of clients who are the
initial purchasers of a new product. Innovators are expressed as the initial 2.5% of the social
system to accept novelty. In various marketing distribution studies, the consumer innovator
 P a g e | 141

has been derived from the status of the new product under investigation. Many other
researchers have studied innovators in terms of their inventiveness or novelty, which includes
their purchase of some least number of fresh products from a particular group of new
products. Non-innovators can be defined as those individuals who buy nothing or merely one
of the new fashion products in market.

 Interest in the product category:

Consumer leaders are much more concerned or interested than both non-adopters and later
adopters and in the categories of product they are among the first to buy. Consumer
innovators are more interested in seeking information regarding their specific comfort from a
diversity of unofficial and mass media causes as compared to non-innovators. Innovators tend
to provide better reflection to the purchase of novel products or services in their area of
interest than non-innovators.

 The innovator is an opinion leader:

There found a strong tendency for customer opinion leaders to be innovators. Customer
trendsetter offers other clients with information and recommendation regarding new products
and those who accept such advices normally follow it. The consumer adopters often influence
the recognition or refusal of new products. When innovators are passionate about a novel
product and support others to try it, the good or product tends to obtain quicker and broader
acceptance. Since, inspired customer innovators can affect the speed of acceptance or
rejection of innovative product; they control its ultimate success or failure.

 Personality traits:
Customer innovators usually are less rigid than non-innovators. They are consistent with their
open-mindedness, and it emerged that inventive behaviour is an appearance of an individual‘s
requirement for uniqueness. Further, buyer innovators are different from non-innovators in
terms of their social character. Customer innovators are generally inner-directed while non-
innovators are other-directed. The early customers of a new line of automobiles may be
inner-directed, while the later buyers of the similar automobile might be other-directed. This
proposes that as recognition of a product improves from early to later adopters, a steady shift
may arise in the personality and nature of innovators from inner-directedness to other-
 P a g e | 142

directedness. There is appearance of a connection among optimum motivation level and

customer innovativeness. Individuals, who look for a lifestyle wealthy in complex, novel, and
extraordinary experiences, having elevated optimum stimulation levels, are more eager to risk
trying new goods/products, to be more inventive, to search for purchase-related information,
and to believe new trading facilities. Variety-seeking customers mostly inclined to be brand
switchers and customers of novel goods or products and services.

Check your progress: 2

iv) We can define __________________________as ―the mental process through which an
individual passes from first learning about an innovation to final adoption,‖ and adoption as
―the decision by an individual to become a regular user of the product‖.
v) The ____________________ are the last category to approve a new and novel product or
its service offering.

9.10. Summary:

The process of diffusion is related with the dispersal of innovations i.e., their adaptation in a
market place. It is very difficult to define new product or product innovations in a single
definition. Therefore, this term has been defined by using various approaches. Maximum
sales of several firms is in form of novel products. Novel products can be considered new in
some ways: new to firm, new to segment, new for legal purposes. It depends on the features
of the new product, that how quickly it would get adopted. Some products are adopted
immediately; for example, both apple iPod and iPhone were sold at a very high rate, right
from the day of their introduction. Consumers may quickly shift from one stage to another, or
they have to turn back in some stages. Buyers may pass quickly or unhurriedly through these
stages, and they may have to reverse back in some stages. All these things are influenced by
the nature of product and surroundings. Let us see, how a consumer reaches purchase
decision. A product is new, if it is perceived to be new by a probable consumer. We can
define adoption process as ―the mental process through which an individual passes from first
learning about an innovation to final adoption,‖ and adoption as ―the decision by an
individual to become a regular user of the product‖. a consumer passes through five stages in
order to adopt a new product: awareness, interest, evaluation, trial, adoption. Any buyers or
consumer‘s acceptance or adoption of new invention or product might resemble the decision-
 P a g e | 143

making sequence. Individual go through the different level of awareness, information search,
assessment, testing and acceptance, while the relative significance of each level or stage may
vary depending on how much is previously known about a product as well as on traditional or
cultural factors that may influence people‘s eagerness to try new things. Though, even inside
the similar culture, all people did not accept an innovation at the similar time. Some act so
quite quickly, and others certainly not do at all. Customers can be ranked into estimated
group based upon the probability of adopting an innovation. The group of adopters can be
associated to stages of the product lifecycle idea used extensively by marketing strategists.
―Adopter categories‖ deals with the classification system among members of the aimed
section(s) that demonstrate where one customer rise in relation to other customer with respect
to time, that has failed among the introduction of the novel product and service offered and
the acceptance by a consumer. According to Roger‘s classification, adopters are classified
into five categories based on the time engaged by them to accept a new product, including
innovators, early adopters, early majority, late majority, and laggards. Based on different
studies, it was noted that when these five categories were plotted on a graph, lead to
formation of bell-shaped normal distribution curve. Innovations involves a technical level and
occupy several efficient changes, for example, car air bags, or be of a more vague kind,
corresponding to a new social sense like a new hairstyle. Nevertheless, different to what
literature states, both are representative in the sense that one deals to symbols of
technological performance and safety while other refers to less concrete symbols like
individuality and courage. In general both types denote symbols of progress. Innovations can
be characterized according to the level which they order for changes in behaviour from
adopters. The three main types of innovation have been recognized, however these categories
are not absolutes. In a relative sense, they refer to the sum of interruption or change they pass
to people‘s lives. An uninterrupted innovation refers to alteration of an existing product, for
example, when a breakfast cereal is launched in a sugar-coated form, or Levi‘s sponsored
‗shrink-to-fit‘ jeans. These types of changes might be employed to set one brand away from
its competitors. Consumer innovators can be explained as moderately small group of clients
who are the initial purchasers of a new product. Innovators are expressed as the initial 2.5%
of the social system to accept novelty. In various marketing distribution studies, the consumer
innovator has been derived from the status of the new product under investigation. Many
other researchers have studied innovators in terms of their inventiveness or novelty, which
includes their purchase of some least number of fresh products from a particular group of
 P a g e | 144

new products. Non-innovators can be defined as those individuals who buy nothing or merely
one of the new fashion products in market.

9.11. Answers to check your progress:

i) ( diffusion)

ii) ( Firm oriented)

iii) ( features)

iv) ( adoption process)

v) ( laggards)

9.12. References:
Allen, D. (1983). New telecommunication services: Network externalities and critical mass.
Telecommunications Policy, 12, 257-271.

Barker, K. (2004). Diffusion of innovations: A world. Journal of Health Communication,

9(1), 131-137.

Bertrand, J. T. (2004). Diffusion of innovations and HIV/AIDS. Journal of Health

Communication, 9(1), 113-121.

Coleman, J. S., Katz, E. & Menzel, H. (1966). Medical innovation: Diffusion of a medical
drug among doctors. Indianapolis, Bobbs-Merrill.

Crane, D. (1972). Invisible colleges. Chicago: University of Chicago Press.

Dearing, J. W. (2004). Improving the state of health programming by using diffusion theory.
Journal of Health Communication, 9(1), 21-36.

Dearing, J.W., & Meyer, G. (2006). Revisiting diffusion theory. In A. Singhal & J.W.
Dearing, J.W. Communication of innovations: A journey with Ev Rogers (pp. 29-60).
Thousand Oaks, CA: Sage.
 P a g e | 145

Deutschmann, P. J., & Danielson, W. A. (1960). Diffusion of knowledge of the major news
story. Journalism Quarterly, 37, 345—355.

Deutschmann, P. J., & Fals Borda, O. (1962). Communication and adoption patterns in an
Andean village. San José, Costa Rica: Programa Interamericano de Informacíon Popular.

Haider, M. & Kreps, G. L. (2004). Forty years of diffusion of innovations: Utility and value
in public health. Journal of Health Communication, 9(1), 3-11.

Hornik, R. (2004). Some reflections on diffusion theory and the role of Everett Rogers.
Journal of Health Communication, 9, 143-148.

Kramer, R. (1993). The policies of information: A study of the French Minitel System. In J.
R. Schement & B. D. Ruben (Eds.), Between communication and information (pp. 453–586).
New Brunswick, NJ: Transaction.

Markus, M. L. (1987). Toward a ―critical mass‖ theory of intensive media: Universal access,
interdependence, and diffusion. Communication Research, 14, 491–511.
Meyer, G. (2004). Diffusion methodology: Time to innovate? Journal of Health
Communication, 9(1), 59-69.

9.13. Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education

2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning
5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books

6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.

7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.

8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
 P a g e | 146

9. Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

9.14. Model and terminal questions:

Q1: what do you understand by diffusion of innovation? Explain in detail.

Q2: what are the various stages in adoption process?

Q3: what are the various adopter categories?

Q4: discuss in detail, the profile of a consumer innovator.

9.15 Glossary:

 Diffusion: the dissemination of elements of culture to other regions

 Innovation: featuring new method, original
 Awareness: having knowledge or perception of situation
 Adoption: choosing something permanently
 Profile: the extent to which a person attracts public notice
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LESSON: 10
Introduction to Consumer Decision Making

Structure:
10.0 objectives
10.1 Introduction
10.2 Consumer decision making
10.3 Consumer decision making process
10.4 Levels of decision making
10.5 Roles in consumer decision making
10.6 Models of consumer decision making
10.7 Summary
10.8 Check your understanding
10.9 References
10.10 Suggested readings
10.11 Modern and terminal questions

10.0 Objectives: After reading this lesson, you will be able to:
 Explain the concept of consumer decision making
 Describe the process of consumer decision making
 Enumerate the roles and levels of consumer decision making
 Describe Models of consumer decision making

10.1 Introduction:
Marketers are interested in purchasing behaviours of the customers, i.e., the decision making
process. It involves choice of an alternative from a mixture of substitutes. The consumers‘
decision making is a choice between different alternatives related to purchase decision like:
- What to purchase;
- Where to purchase;
- When to purchase;
- How to purchase;
- How much to purchase.
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Consumer decision making includes a continuous interactions with environmental factors,

cognitive and affective processes and behavioural actions. Consumer‘s decisions are based on
previous learning, affect and behaviour toward the marketing mix.

10.2 Consumer decision making:

Purchase made by a customer is in reality an answer towards a problem. Consumer Decision
building includes decisions related to product/services offered in the market. It is defined as
the process of collection, processing and evaluation of information and picking up the best
feasible alternative to resolve any crisis or to formulate a selling behaviour.
Consumer Decision Making governs many decisions given below:
a) What to purchase: includes commodities/Services and their Brands.
b) How much to purchase: includes Amount or Quantity of product/goods.
c) Where to purchase: deals with Place of purchase
d) When to purchase: deals with the Time of purchase
e) How to purchase: it includes different Payment terms.
All the buying choices are not the same. Therefore, an attempt required for each decision
making is different for different consumers. There are two main types of decision making;
a. Programmed decision making and
b. Non-programmed decision making
a) Programmed: It deals with the problems that are regular and happen routinely in nature.
These troubles are very easy to deal with and options are made without any difficulty. In
manufactured goods promotion, these are the main and important decisions associated with
our every day buying or expediency shopping goods; which are normally very low
contributing purchases and the brand reliability could effortlessly grow.
Examples: Procurement/buying made for toiletries, staples etc.
b) Non-programmed: It is functional for the issues which happen abruptly furthermore are
exceptional in nature. Because of this nature, this decision making process becomes very
complicated and entails massive data gathering, dealing with it and later evaluation. In
marketing, these decisions are concerned to rare purchases or specific commodities and
urgently required goods; these are immensely participating purchases.
Examples: Laptops, cars, real estate etc purchases.

10.3 Consumer decision making Process:

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Figure 10.1 represent the purchaser decision method which comprises of five steps: -Need
recognition
- Information search
-Evaluation of alternatives
-Purchase decision, and
-Post purchase behaviour
The diagram undoubtedly exhibits that the shopping progresses earlier than the genuine
buying and continues after buying. Marketing researchers should spotlight the complete
buying process instead of the purchase decision only.
Figure 10.1 displays the passing of consumers through five different stages during every
decision made for purchase. But in reality, while during more regular purchases, clients over
and over again miss or repeat several stages. For example, any woman selling her habitual
kind of shampoo or toothpaste would identify the necessity and make a decision to go for a
product, skipping the stages of information seeking and assessment.

Need Information Evaluation of Purchase

Recognition Search Alternatives Decision Post
Purchase
Decision
Consumer decision making process (fig. 10.1)

1. Need Recognition
The first stage of selling practice is need recognition—the buyer has ability to recognize a
difficulty or requirement. The necessity can be initiated by inbuilt stimuli whereas in case of
the basic needs of an individual, for e.g. hunger or thirst, it climbs to a high stage adequate to
turn into a drive. A requirement can also begin with exterior stimuli. For example, seeing an
ad or by discussing with your friends or family may change your mind and make you think
about selling a new brand car. The marketing researchers at this step must discover out what
types of wants or difficulties may start, what fetch them about, and how individual direct the
customer mind to this specific product.

2. Information Search
Any concerned shopper searches for any supplementary information about the manufactured
goods they are concerned to. If the purchaser drive is strong enough and product is satisfying
with easy availability then he/she is expected to procure it at once. Otherwise, the customer
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can stockpile the wants in mind or take on an information search directly linked to the need.
For eg., if a person has decided to buy a latest branded car, in that case he will possibly pay
extra awareness regarding commercials about the car and discuss with friends who owned
those cars. He may enthusiastically search the information online, debating with friends, and
assemble whole information in different ways. Customers can collect information from
numerous supplies which involves;
-Personal sources which comprises family members, friends, neighbours, associates.
-Commercial sources cover advertisements, salesperson‘s dealings, networking sites of
sellers, product wrapping and its exhibition.
-Public sources include consumer rating institutes, mass media, Internet engines.
-Experiential sources encompass examining, handling and finally using the product.
The level of impact of these sources differs according to the manufactured goods class and
the shopper.
Usually, purchaser collects large amount of information on a product/services or brand from
commercial sources that are generally controlled by the vendor, whereas the most efficient
source is personal one. Commercial sources in general update the buyer, but the sources
which are personal, help in evaluation of goods for the customer. For example, a current
study depict that word of mouth is the strongest influencer in people‘s electronics (43.7
percent) and apparel (33.6 percent) purchases.
Another recent study found that consumers search sources of user-created content such as
blogs, online review site, debate forums, and social networking sites. These sources are three
fold more significantly effective while building a buying decision than conventional
marketing processes like TV advertising.
For example; in car information search, as much as the information is gathered regarding
accessible brands and features, user‘s awareness and familiarity also increases.
3. Evaluation of Alternatives
Consumers use information to reach a decision of ultimate choice of brand among alternative
brands. Marketers need to know about alternative evaluation criteria, which are used by
consumer to get all the required information to reach destined brand choices. Customers use
several evaluation processes while making buying decisions. The consumer develops an
attitude toward diverse varieties of products by several evaluation criteria‘s. Marketers want
to know how consumers are evaluating various purchase alternatives in a specific buying
situation. On one hand, clients apply cautious estimations and reasonable assessment while
on the other hand, the same clients are doing slight or no evaluation; instead they purchase
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relying on their intuition. Sometimes customers formulate their own selling decisions while
occasionally they depend on friends, online reviews, or salespeople for buying advice. For
instance, an individual has narrowed their car brand choices to 3 main brands and assume he
is mainly fascinated with its four features—its style, functioning economy, guarantee, and
finally its cost. By this time, customer has possibly created beliefs regarding rating of every
characteristic. Undoubtedly, if one car rated finest on every aspect, the seller might predict
that he would prefer it, yet, the brands will differ in appeal. If he might base his selling
judgment on just one feature, then his choice would be easily predictable and if he required
fashion above everything else, he would purchase finest and stylish car. But it was observed
that most of the consumers think about numerous characteristic and each with different
significant level. If the vendor knew the significance that shopper allocated to each attribute,
marketer may possibly forecast the consumer‘s car preference more consistently.
Market people must learn about the buyer‘s needs to judge about evaluation basis used by
consumer for brand alternatives. If marketers know about an individual‘s evaluation process
then they can take try to control their decision.

4. Purchase Decision
Generally, the purchase decision of the consumers will be about the buying of most
preferred brand, but two main aspects can affect the intention and decision of purchasing.
The first aspect deals with the behaviour of others, for example, if family, friends or
colleagues of customer believe that he should purchase the car with low price, then the
probability of his buying a more costly car are very less.
The second aspect is about unexpected situational things. In this, the shopper may outline a
purchasing goal dependent on various factors like usual earnings, normal price, and expected
manufactured goods uses. However, unpredictable events may sometimes change the overall
procurement intention of consumer. For e.g. there is hopelessness in the financial system, a
close opponent may drop its value, or a buddy may testify being dissatisfied in customer
favoured car. Thus, these likings and even buying objectives does not end in definite choice
of purchase.

5. Post purchase Behaviour

The marketer‘s duties do not finish with the product purchasing. After purchase, the procurer
will either be fulfilled or unhappy and will take on post purchase behaviour. Marketers are
always found to be interested in knowing the connection among the expectations of
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consumer‘s and the apparent performance of product. If the product covers less expectations
of the customer then he is saddened and if it meets expectations then the satisfaction in the
consumer increases. If the product exceeds expectations then the purchaser is delighted.
Bigger the gap among expectations of customers and performance of the product, greater will
be the consumer‘s dissatisfaction. Thus, the sellers must promise only what their brands can
deliver to make consumers more satisfied.
Mostly, the major purchases lead to cognitive dissonance or uneasiness from after purchase
clashes. In post purchase, the regulars want to be pleased with the usefulness of the brand
they chose. Nevertheless, every purchase system involves some settlements and
compromises. As a result, clients feel sad and disheartened about attaining the weaknesses of
the selected brand and regarding losing the benefits of the brand which are not procured.
Thus, clients always have a little post buying disagreements for every purchase.
Customer satisfaction is a base for constructing a profitable relationship with consumers; for
maintaining and increasing consumers and receiving their customer lifetime value. A
customer which is more satisfied can acquire manufactured goods again, communicate
favourably to others regarding the product, give low consideration about the competing
brands and their advertisements, and also buy many other commodities from the company.
Several marketers even try to enchant the customer.
An unsatisfied consumer may act differently in different situations. It is well known that
―Bad word of mouth predominantly travels farther and faster than good word of mouth‖. It
can quickly provide negative impact on attitudes of consumer regarding a product and its
production company. But firms cannot simply hope that unsatisfied customers to file their
complaints when they are unsatisfied. Mostly the customers which are unhappy will never let
the company know regarding their problems. So, a company should keep on measuring
customer satisfaction on regular basis. The systems should be built to promote clients to
complaint. Through this, the organisation can know about their performance and can
improve. Marketers may possibly capable of finding ways to help customers by
understanding the buyer decision process. Taking an example, if regular clients are not
selling a newly introduced product as they do not feel it necessary. The marketers may begin
publicity by showing ads with messages that can trigger the requirements and show the best
side of product in solving problems of the customers. If customers aware of the product but
are not buying because they had an unfavourable reaction toward the product then marketers
must try to figure out ways to modify the item or change consumer‘s perception towards it.
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Activity: 1
Take a real life need being a consumer and explain the various steps of decision making:
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10.4 Different Levels of Decision Making

Decision making deals with the selection of an option from different alternatives used to
resolve any problem. Time and effort mandatorily used to solve the problem is different for
different buying conditions. There are three types of problem solving levels which help in
consumer to make a decision;
(i) Extensive problem solving (EPS)
(ii) Limited problem solving (LPS)
(iii) Routinized problem solving (RPS) or Routinized response behaviour

a) Extensive problem solving (EPS): EPS deals with the regular customer‘s unawareness
regarding the manufactured goods and its service category. Consumer has no information
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about the product and its service offering, so, the circumstances need a widespread gathering
of information and its evaluation.
Consumer is generally unfamiliar with a variety of decision making criteria‘s and brands
accessible to evaluate the product/service offerings. The results of the buying process require
major attempt on part of the customer. User has to collect information concerning;
(i) the decision making criteria;
(ii) the brands availability; and
(iii) to formulate a choice between different brands available.
Generally five forms of products have been used by EPS:
5. These are highly participated goods
6. These are high-priced;
7. These are less habitually purchased;
8. There is involvement of huge risk.
9. These are commonly first time purchase.
Examples include electronic goods, real estate, jewellery items, automobiles etc.

b) Limited problem solving (LPS): In this type of problem solving, consumer is fully aware
of the product or service however not aware about different brands which offers the product
and related services. Here, the shopper is known to the product‘s class but remain unfamiliar
with the brands.
The consumer is:
- Familiar with a few brands and evaluation criteria of the manufactured goods and their
service offers.
- Unaware of the newly introduced brands.
- Has not evaluated available brands and preference levels among brands has not been
established
The result is this purchase process is more repeated purchases and it requires barely a
moderate effort from the consumer. Consumer has to collect information and modify the
existing knowledge and after that he has to make a purchase decision.
Different types of products and conditions where LPS is used:
9. These are little participated goods;
10. There are usually of fair cost;
11. There are commonly procured;
12. There is less risk involved.
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13. These are usually repeated purchases.

Exceptions: There can be some cases where highly priced product is being repurchased.
Examples: Computer desktop which replaces laptop, a second hand Television set for the
home.
c) Routinized problem solving (RPS): Since, purchaser is well known about the product and
practised well with the item and offered services. The consumer is provided with sufficient
knowledge about the criteria of decision making and the different brands available.
1. There are low involvement goods;
2. There are inexpensive;
3. There are commonly bought;
4. No risk involved in them.
These are found to be habitual purchases of product or service offering and the consumer
may be brand loyal. These buying processes involve small efforts on part of the consumer.
RPS are simple, purchases are done routinely and completed out of habit.
Examples: Stationery items, Staples, Cold drinks etc.

10.5 Roles in Consumer decision making:

Consumer decision making is a complicated practice including combination of responses
among a user and his cognition generally affected by the behaviour and different
environmental forces.
The actual decision is preceded by important thought processing and its influences. This may
well explained by five ―Buying Roles‖ namely Initiator; Influencer; Decider; Buyer; and
User. Market researcher needs to recognize all these roles to formulate appropriate
approaches for targeting customers.
a) Initiator: is an individual who find out a need and initially recommends the idea of selling
a particular product or its service.
b) Influencer: an individual who affects the consumer in building his/her ultimate conclusion
related to the manufactured goods.
c) Decider: is someone who makes a decision on the final selection of product, its timing,
place and mode of purchase.
d) Buyer: is an individual who does the final deal and is concerned about the substantial
exchange of doing a purchase.
e) User: a one who in reality consume the purchased item and its related service offerings.
These buying functions can be demonstrated through following example:
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Example 1:
A housewife who enjoys watching TV programmes when her husband and children are not at
home. She always complains about the current TV model that it has been creating problems
and suggests that the family must buy a new TV set.
i) Initiator is the lady
ii) Influencer is her friends and neighbours.
iii) Decider is she herself, her companion and the kids.
iv) Buyer is her spouse or son/daughter or maybe she herself.
v) User is the whole family.

Activity: 2
Suppose, you are a consumer and you want to purchase a TV. What and who will play
different roles in making decision regarding the purchase of TV.
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Check your progress: 1

i)Marketers are interested in ____________ behaviours of the consumers.
ii) Consumer Decision Making includes decisions regarding ______________ and
_________________ offered in the market.
iii) _____________ and ___________________ decision making are the two types of
decision making.

10.6 Models of consumer decision making:

10.6.1 The Howard Sheth Model of Buying Behaviour
This model works on two ideas:
1. It exhibits the multifaceted consumer buying behaviour.
2. It offers structure for a range of components like learning, observation, attitudes, etc.,
which can affect customer buying behaviour.

Inputs: According to this theory, the major motivation influencing the behaviour of buyers
are the informational signs linked to the quality of the manufactured goods. These types of
cues might be very important if it comes to the mind of the purchaser during the shopping
activity from the product itself. A symbolic cue may also operate as information resources.
Both the cues whether it is significative or symbolic, signify the organisations advertising
efforts. The information cues related to product features include price, quality, uniqueness
and service availability. On the other hand, there are numerous remote sources which include
mass media interactions and marketing. Other sources to get information are sales and service
staff who can improve the impact of the selling efforts of any firm. Various public
information cues include family members; friends; members of the group with whom
consumer generally come in contact with or to which he desire to be; which may possibly
influence the buying behaviour and the marketer of the company has no power over this
source.

Perceptual Constructs: It includes all the varied or multifaceted emotional practices

(perception) and ways with which a person handles the information cues derived from
different sources.
All information available to consumer is not attended and may ambiguous in nature. When
the individual is involved in information search then sometimes he/she may be bombarded
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with unimportant information. Moreover, perceptual biasness may distort the result of
consumer references drawn from any information cues attended by the individual.

The Howard Sheth Model of Buying Behaviour

Learning Constructs: The supposed constructs of this hypothesis is very complicated.

‗Motives‘ known as the targets, any person tries to accomplish through his/her business
minded behaviour. These types of goals are based on the variety of desires, which can act as
an important cue for his/her motive. These are more closely linked to the attitude of consumer
towards the product and its brand. These type of constructs engaged with ‗brand
comprehension‘ i.e., information or awareness about the characteristics of product brand that
forms a basis for the consumer to evaluate different alternatives; choice criteria, and the
assurance any customer has on his/ her product understanding, attitudes, or aim. In the end,
this model represents a construct of ‗satisfaction‘ for the buyers. It was observed that if the
consumer is unsatisfied regarding the product use, then it leads to negative attitude and low
attention to the product service offered.
Exogenous or external Variables: It includes several variables, which bear a few or every
constructs described which ultimately affects the result or response of consumer.
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1. Social and organizational setting: Man being social gets involved in various groups and
societies; as they look for supervision of one another regarding their purchase decisions like
buying clothes etc.
2. Social class: To act according to rules of societal class to which an individual belongs,
he/she will be occupied in an acceptable manner as per their social class.
3. Culture: Culture means to share the consistent form of behaviour of people of any group
and it consists of set of values, beliefs etc. Hence, the behaviour of any consumer will be
based on a kind of attitudes shared on a culture or on subculture trait.
4. Financial status/Purchasing power: It deals with the cash accessible for buying of goods
and its related services for the period of time, also plays an important part in affecting the
expenditure pattern and thus buying behaviour.

10.6.2 The Engel-Kollat-Blackwell Model

 Variables include different groups:
a) Stimulus inputs
b) Information processing
c) Decision process and
d) Variables affecting the decision process
 Model‘s capability deals with situations of less-contribution. In these situations, the
extent to which the different phases in the model assumed, decreases.
 Problems with model:
a) There is no particular mode of testing e.g. If there is an idea of characteristics defining
personality, application or prediction of customer‘s behaviour.
b) Short of specificity i.e. variables are termed in apparently possible way but not with
operational detail specifically.
This model exhibits consumer behaviour as 5 steps decision making process.
1. Problem recognition: In this recognition, consumer has to identify dissimilarity among his
or her real position and the perfect position it must be. It happens on explanation of exterior
stimuli.
2. Information search: This type of information is originally accessible to the buyer and
might be reliable to his previous attitudes and beliefs. In this stage, the customer will always
try to assemble additional information from diverse resources. In this search, the person gets
exposed to the stimuli which may further grab his or her attention, generally stored or
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remained in memory. The informational search is choosy in nature and the customer will
easily acknowledge the information that is in accordance to what is supposed to be with them.
3. Alternative evaluation: The alternate brands will be evaluated by the consumer. The
evaluation methods employed for the range of goods will depend on its original goals,
motives and individuality of the buyer. The purchaser also possesses certain involuntary
philosophy regarding the available brands in terms of the features related to various other
brands.
4. Choice: The intention and attitude of consumer will decide his or her choice. The
consumer preference will be based on the ―normative observance‖ and predictable situations.
―Normative compliance‖ refers to the level to which the user is inclined by other individuals
such as family members, friends etc.

Outcome: The result may possibly be positive or negative. The model comprises of number
of other linked variables other than above mentioned ones. The four steps are further
clustered into five classes:
1. Information input
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2. Information dispensation
3. Product‘s trademark assessment
4. Common appealing affects
5. Internalized ecological influences
Further, Engel-Kollat-Blackwell model consists of 4 parts:
i. Information processing
ii. Central control Unit
iii. Decision making process and
iv. Environmental effects
i. Information processing: Information processing involves selective exposure, awareness,
understanding and maintenance of stimulus by consumer associating with a product or its
brand obtained from different sources of marketing and non-marketing. First objective of
marketers is to guarantee that a customer is exposed to their stimuli and pays interest to it,
recognize its Structure and also memorize it.
ii. Central Control Unit: The response received is remembered and is progressed in the
central control unit. Four psychological filters are helpful in processing and interpretation of
stimuli:
a. Information stored and previous experience related to the product and its brand act as a
memory for evaluating various substitutes;
b. Evaluation norm used by consumer for assessing the alternatives;
c. Common and précised behaviour that affects the decision regarding buying;
d. Vital behavioural characters that control the response of consumer regarding different
alternatives.
iii. Decision making process: Various components of decision process model consist of:
a. Problem recognition
b. Internal search and evaluation
c. External search and evaluation
d. Purchase processes
e. Decision outcomes
If the decision making on purchase involve widespread problem solving then the buyer would
go throughout all the 5 steps mentioned above. To solve incomplete problem, some of the
intermediating stages could be ignored and the buyer may straightly achieve the purchase
decision.
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iv. Environmental effects: Factors like, culture, income, family, physical situations and
social class may also influence the purchase decisions. Depending on the précised item under
consideration, environmental factors may show a favourable or unfavourable impact.
10.6.3 Nicosia Model
This model describes the customer‘s behaviour depending on the four main fields as
described in the figure. Field one output is the input of field two, and so on.

Nicosia Model

Field one further comprised of sub-fields one and two. Subfield one represent firm‘s and its
product features. Subfield two is the inclination of the customer and his own features and
attributes, which show impact of his revelation on different types of information and
message, and is accountable for the build up of attitude of the buyer toward a product. Field
two depicts pre-action field, where the customer does extensive study and assessment and
acquired stimulation to purchase a product. It highlights the means and end relationship. Field
three represent decision making process for product or act of purchase. Field four highlights
the behaviour regarding post-purchase; product usage, its consumption and storage. The
feedback from field four provides factors for changing the firm‘s attributes or field one, and
this response from the practice is responsible for varying the pre-disposition of the shopper
and also his approaches towards the manufactured goods.
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Nicosia Model forms a wide-ranging system of deals including features concerning attitude
building, purchase of product and usage of product which further indicates the after-purchase
consumer behaviour.
10.6.4 Model of consumer behaviour
Consumers are daily making so many buying decisions. Most of marketing research is done
to understand consumer purchasing decisions to know about items, place, mode, quantity,
timing and reasons of purchase. It is very complex to understand consumer buying behaviour.
The company that understand the way clients will react to diverse characteristics of a product,
its pricing, and advertising campaigns, always have a lead over its opponents. In the model,
first step is the stimulus response of customer behaviour revealed in Figure below.

In this figure, the selling and other stimuli enter the buyer's "black box" and generate some
responses. It is very important for marketer to understand the buyer's black box. Marketing
stimuli involves four Ps: Product, Price, Place, and Promotion. Other stimuli comprises of
certain main events and forces like economic, technological, political, and cultural prevalent
in the purchaser area. Stimuli enters in the buyer's black box, and leads to a set of
recognisable consumer responses which could be choice of product, brand, dealer, purchase
timing, and buying quantity. The marketers are always interested in understanding the
conversion of stimuli into outputs within the customer‘s black box, which contains two parts.
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Initially, shopper characteristics are influenced and how she/he reacts to the stimuli.
Secondly, the process of buyer's decision affects the behaviour of a buyer.

Check your Progress: 2

iv) five stages in consumer decision making includes: 1)________________________
2_________________ 3____________________ 4______________________,
5__________________________
v) according to Howard Sheth model, the most significant stimulus influencing the buying
behaviour are the ________________related to the features of the product.
vi) according to Engel Kollat-Blackwell model, variables are grouped into following
groups:_________________,________________________,_______________________,
______________________.

10.7 Summary:
Decision making is defined as the selection of an option from alternatives to solve a problem.
The time and effort required to solve the problem varies according to buying situations.
Marketers are interested in purchasing behaviours of the consumers. The consumers‘ decision
making is a choice between different alternatives related to purchase decision. Consumer
decision making includes a continuous interactions with environmental factors, cognitive and
affective processes and behavioural actions. Consumer‘s decisions are based on previous
learning, affect and behaviour toward the marketing mix. Purchase made by a consumer is
actually an answer to a problem in present settings. Consumer decision making includes the
decision regarding product and service, quality, place, payment terms and time. There are
mainly two types of decision making; i) Programmed decision making: It is applied on the
problems that are routine and regular in nature. ii) Non-programmed decision making: It is
applied on the problems that arise suddenly and are unique in nature. consumer decision
process comprises of five stages: need recognition, information search, evaluation of
alternatives, purchase decision, and post purchase behaviour. In Need recognition, the buyer
recognizes a problem or need. In information search, interested consumer decides either to
search for more information or not. In evaluation of alternative stage, Consumers use
information to reach at a set of final brand choices among alternative brands. In purchase
decision phase the consumers will be to buy the most preferred brand. After purchase, the
consumer will either be satisfied or dissatisfied and will engage in post purchase behaviour.
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There are three kinds of problem solving levels of consumer decision making; (i) Extensive
problem solving (EPS) (ii) Limited problem solving (LPS) (iii) Routinized problem solving
(RPS) or Routinized response behaviour. The actual decision is preceded by significant
amount of thought processes and influences. This could be explained by five ―Buying Roles‖
viz., Initiator, Influencer, Decider, Buyer and, User. The marketing researcher needs to
understand all these roles to formulated suitable strategies to target customers. The different
roles include; initiator, influencer, decider, buyer, user. Various models of consumer decision
making has been present by researchers, here in this lesson, some of the prominent models
are presented in detail. These models include The Howard Sheth Model of Buying
Behaviour, Engel-Kollat-Blackwell Model, Nicosia Model, Sheth-family decision making
model, Model of consumer behaviour, Bettman‘s Information processing model of consumer
choice and Pavlovian Learning Model.
10.8 answers to Check your progress:
i) (purchase)
ii) (products, services)
iii) (Programmed decisions, Non-programmed decision)
iv) (need recognition, information search, evaluation of alternatives, purchase decision, post
purchase behaviour)
v) (information cues)
vi) (Stimulus inputs, Information processing, Decision process and, Variables influencing the
decision process)
vii) (dogs, meat)

10.9 References:

MICHAEL RICHARME , Ph.D.; Consumer Decision-Making Models, Strategies, and

Theories, Oh My!

AJZEN, I., 1985. From intentions to actions: a theory of planned behavior. In: J. KUHL AND
J.

BECKMAN, eds. Action-control: From Cognition to Behaviour. Heidelberg: Springer, 11-39.

AJZEN, I., 19-9-2007. Icek Ajzen: TpB Diagram, [online]. Available from:
http://www.people.umass.edu/aizen/tpb.diag.html#null-link [Accessed: 19-9-2007].

ARISTOTLE, 350 B.C. On Memory and Reminiscence. Available at:

http://classics.mit.edu/Aristotle/memory.html.
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ARNOLD, J., et al., 1991. Work Psychology: Understanding human behaviour in the
workplace. 2nd ed. ed. London: Pitman.

BAGOZZI, R., et al., 2002. The Social Psychology of Consumer Behaviour. Buckingham:
Open University Press.

BAY, D., et al., 2003. The Theory of Trying and Goal-Directed Behavior: The Effect of
Moving Up the Hierarchy of Goals. Psychology & Marketing, 20, (8) 669-684.

BLACKWELL, R., et al., 2001. Consumer Behavior. 9th ed. Orlando: Harcourt.

BOZINOFF, L., 1982. A script theoretic approach to information processing: an energy

conservation application. . In: Advances in Consumer Research IX. Twelfth Annual
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BURNS, A. C., et al., 1990. Toward improving household consumption behavior research:
aviodance of pitfalls in using alternative houshold data collection procedures. . In: Advances
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10.10 Suggested readings:

1. Schiffman, L.G. and Kanuk, L.L., ‗Consumer Behavior‘, Pearson Education
2. Loudon, D. and Bitta, D., ‗Consumer Behaviour‘, Tata McGraw Hill
3. Assael, H., ‗Consumer Behaviour in Action‘, Cengage Learning
4. Blackwell, R.D., Miniard, P.W. and Engel, J.F., ‗Consumer Behaviour‘, Cengage Learning
5. Batra S and Kazmi S, ‗Consumer Behaviour‘, Excel Books
6. Nair, ‗Consumer Behaviour in Indian Perspective‘ Himalaya Publications.
7.Peter, P.J. and Olson, J.C., Consumer Behaviour and Marketing Strategy, Seventh Edition,
2005, McGraw-Hill Higher Education.
8.Wells W.D. and Prensky, D., Consumer Behaviour, 1996, John Wiley & sons, Inc.
9.Michael Solomon et. al., Consumer Behaviour: An European Perspective, Prentice Hall,
Third Edition

10.11 Modern terminal questions:

Q 1: What is consumer decision making?
Q 2: Explain the process of consumer decision making in detail.
Q 3: What are the various levels of decision making?
Q 4: What are the various roles that a consumer plays in decision making?
Q 5: Explain Howard Sheth Model of Buying Behaviour in detail.
Q 6: Explain Pavlovnian model in detail.
Q 7: Give a brief account of different models of consumer behaviour.

Glossary:
 Alternatives: one or more options available as other options
 Constructs: a theory from various conceptual elements
 Exogenous: related to or developing from external factors
 Triggering: an event that cause something to happen
 Reinforcement: strength or support