CB Merged

Consumer Behaviour
Dr Chhavi Taneja,
PhD (Marketing) and M.B.A – University of Delhi,
B.A (Hons.) Economics – Shri Ram College of Commerce
LinkedIn : https://www.linkedin.com/in/dr-chhavi-taneja-75934257/
NMIMS-SCE : https://distance.nmims.edu/faculty/dr-chhavi-taneja/
Know your Faculty
Experience
• 21 + years of experience in academics and corporate
Industry and Research (5 years)

• Worked with Nielsen in Retail Audits and Consumer Panels
• Handled key clients such as Dabur, Gillette etc.
Consultant / Instructor / Subject Matter Expert (16 +years)

• Educational Consultant: Experience in designing contemporary curriculum for experiential learning,
developing SLMs
• Associated with NMIMS, upGrad, IMT Ghaziabad, BIMTECH
• Thesis Supervisor – Liverpool John Moores University, UK
• Expertise: Conducting Executive MBA, Full-time and Part-time programs
• Guided Dissertation Research Projects, Sectoral Research Projects of students from Indian and
International universities
• Presented several academic papers in journals & international conferences
• Key Courses: Marketing Management, Consumer Behaviour, Marketing Research, Integrated
Marketing Communication, Business Research Methods
Consumer Behaviour
COURSE MINDMAP
• Consumer Behaviour • Overview of Consumer Behaviour

Session and Marketing Strategy • Customer Value, Satisfaction and Loyalty
1
• Consumer Decision • Consumer Decision-making Model & Factors

Session Making • Stages in the Decision-making process
2
• Consumer needs and motivation

Session • Consumer Motivation • Hierarchy of Consumer needs
3
• Theories of Consumer Personality

Session • Consumer Personality • Consumers’ Self-images & Product choices
4 • Brand Personalities
• Consumer Perception • Sensory dynamics and elements of

Session Perception
5
• Components of Consumer Imagery
Consumer Behaviour
COURSE MINDMAP
• Reference Groups and word-of-mouth

• Reference Groups and • Role of Family and Family Life Cycle
Session Role of Family
6 • Family Decision Making and Social class
• Cultural values and beliefs

• Consumer Culture • Changing cultural values and impact on
Session
7 the consumer
• Consumer Attitude • Models of Attitude

Session
8
• Altering Consumer Attitudes
• Four elements of Consumer Learning

Session • Consumer Learning • Behavioural Learning
9 • Instrumental Learning
Session • Consumer Research • Consumer Research Process

10 • Secondary & Primary data
• Qualitative & Quantitative Research
ASSESSMENTS
IAs TEE
9 IAs – best of 7 DQs / Caselets:

(10 marks each) • Subjective knowledge
• DQs / Caselet 3 DQs OR • Application of concepts
• Word file / PPT 2 Caselets • Analytical skills
• Writing skills
70 + 30
100
TIPS AND TRICKS
Attend the Participate in

Classes Class
Discussions
and MCQs
Come
prepared
Post your
with the
Queries
Caselets
Communication Platforms for different Queries
• SESSION / COURSE RELATED QUERIES FOR THE FACULTY
• In-session Chat Window
• Post-my-Query – on the Portal
• IA OR TEE – RELATED QUERIES
• Mail your queries to ngasce@nmims.edu
• ANY OTHER ACADEMIC / NON-ACADEMIC QUERIES
• Raise it with the Student Support Team

Consumer Behaviour
Session 1
Chapter No 1 and 2
Chapter Name:
Technology-driven Consumer Behaviour
Segmentation, Targeting and Positioning
Learning Outcomes
o Understand the Relationship Between Consumer Behavior and

Marketing
o Understand the nuances of Marketing in the new economy
o Video: Why Netflix has been struggling in India (2019)
o Decoding the basic concepts of Consumer behavior
o Video: The ‘Evolving Consumer’ during COVID 19
o Gaining knowledge of Customer Value, Satisfaction, Trust and
Loyalty
Why do I need to decode the Consumer?
IKEA: “To create a better everyday life for the many people”
Amazon: “To be Earth’s most customer-centric company, where customers
can find and discover anything they might want to buy online”
L’oreal: “To provide the best in cosmetics innovation to women and men
around the world with respect for their diversity”
Apple: “To bringing the best user experience to its customers through its
innovative hardware, software, and services”
Tata: “To be the most reliable global network for customers and suppliers,
that delivers value through products and services”
“The purpose of the business is to create customers”

Peter Drucker
Ultimate aim of an organisation is to be able to
create and retain customers
10
Unravelling the consumer from the outside
to the inside
Who is a
Needs, Wants and Demands
State of
deprivation of
some basic
satisfaction
Desire for a
specific satisfier
of these needs
Need and Want for specific

products backed by an
ability and willingness to
buy them
What is Consumer Behavior
o The most critical component is identifying the need and how the
offering fits into the consumer’s life
o Decisions a consumer makes while making a purchase:
o What do we buy and why

o How much do we buy and how often
o When do we buy and from where
o How often do we use the product
o How do we evaluate the product post the purchase?
o Do we go back to the same brand? Why or why not?
o How do we as consumers search for products

o How do we evaluate them
o How do we purchase them and dispose them off
o Consumer behaviors reflects the totality of consumers’ decisions

with respect to the acquisition, consumption, and disposition of
goods, services, time, and ideas by (human) decision making
units. (Mussen and Rosenzweig 1976)
o Consumer behaviour refers to the actions and decision processes

of people who purchase goods and services for personal
consumption. (By Peter D. Bennett, ed. Dictionary of Marketing
Terms, 2nd ed. 1995.)
Impact of Digital Revolution
Marketers Consumers
• More products and services • Extensive information about

through customization products, marketers,
• Instantaneous exchanges organisations
• Extensive information about • Easy-to-access technology:
consumers and markets easily computers, mobiles, PDA, GPS,
available smart TV
• Plethora of products and brands
• An informed powerful consumer
#ConsumerInsights
Netflix, the worldwide No. 1 OTT player secures a distant third position in the Indian
market, with a subscriber base of near 6 mn, nowhere close to Disney + Hotstar’s 46mn
and Amazon Prime’s 22 mn subscribers
o Netflix started with a monthly o Slashed prices by nearly 60% to Rs. 149 monthly
subscription of Rs. 500, way higher o New pricing will help reach out to an untapped
consumer in Tier 2 and 3
than Amazon Prime’s Rs. 999 per
year
o Need for more Regional Content
o Content was mostly international o Need for family shows
o Few family shows o Need for Sports content (80% of Hotstar subscription is
bcoz of Sports – CNBC)
o Language was English and other o Need for a language pull; sizeable proportion speaks
international languages Tamil, Telugu, Kannada, Bengali
o Need to change Consumer Perception and brand’s

o Consumer Perception was FIRANGI image to DESI
#ConsumerInsights
How did the pandemic change the Indian Consumer
Key takeaways:
o 81% of the people surveyed said they will buy natural beauty products over
‘clinical’ ones, going forward
o 90% of young Indians surveyed said they will choose family over friends
o 61% said that the simple act of eating together as a family has become one of the
main acts of family bonding
o 82% prefer tutorials from an influencer rather than a brand
o People are willing to pay a premium for healthier and cleaner alternatives in food
o 87% said that they will continue cooking post the pandemic
o Over 50% of all those surveyed would like to come in to the office 2-3 days in a
week, going forward
o As self-care and mental health became priorities in 2020, it was observed that 72% of
the people surveyed sought out mindfulness practices
o Restricted use of fitness centers and the increasing awareness about physical and
mental well-being, resulted in 33% bought free weights and 28% bought yoga mats
Source: Schbang report, shared exclusively with Brand Equity
#ConsumerInsights
How did the pandemic change the Indian Consumer
Key takeaways:
oConsumers have become self-reliant and adopted the DIY culture

oLeading to accelerated purchases of health devices, beauty devices, fitness gadgets,
headphones, health monitoring machines, even consumer durables and home
entertainment
Connected, no issues so far
oGrowth of internet and digital wallets have boosted this phenomenon
oTier II and III towns also witnessing similar trends
Source: https://timesofindia.indiatimes.com/blogs/voices/impact-of-the-pandemic-
on-the-indian-consumer-needs/
#ConsumerInsights
Key trends shaping the Indian Consumer
Key takeaways:
oIncrease in food and beverages with high-protein claims

oExposure and trial is essential to boost plant-based meat substitutes. Biggest barrier
is the consumer’s pre-conceived notion / perception about these foods not
appealing
oShift from skin-care to skin health; attributing most skin issues to stress, sleep
issues, unhealthy diet and lifestyle, hormonal disorders
oHuge untapped opportunity for scalp-care, especially dandruff
oSocial media influencing consumer choices and their expectations from products
o
Source: https://www.indianretailer.com/article/whats-hot/retail-trends/key-trends-
that-are-shaping-the-indian-consumer-market.a7824
Time for a break..
Goal of Marketing
Ultimate aim of an Organisation: To create/attract and retain the customers
Goal of Marketing : Know and Understand the consumer so well
that the product fits him and sells itself
By offering a product which offers the
customer some value, leading to high level of
satisfaction which will result in trust in the
marketer and ultimately leading to repurchase by
the consumer or customer retention
Successful Relationships with Consumers

High level of Strong sense
Customer Customer
customer of customer
value retention
satisfaction trust
Value to the Customer
• Customer Perceived Value
Customer’s evaluation of the difference in all the benefits and costs associated with an offering
• Total Customer Value / Benefits

Monetary value of the benefits that a customer associated
with an offering
– Product benefit Costs Benefits
– Services benefit
– Personnel benefit
– Image benefit
• Total Customer Cost

It is the bundle of costs customer expect to incur in evaluating,
obtaining, using, and disposing of the product or service
Costs he expects to incur in obtaining & using the
product
– Monetary cost
– Time cost / Opportunity cost
– Energy cost
– Psychological cost
Case of
Fevicol
25
Satisfaction to the Customer
• Satisfaction
Person’s individual perception and / or feeling of pleasure or discontent resulting from
comparing a
product or service’s expected performance with the actual outcome
• After using a product, a customer would be

– Dissatisfied : Expected > Actual
– Satisfied : Expected = Actual
– Highly satisfied / Delighted : Expected < Actual
• Expected performance measured by a customer

through
– Past experience of using the brand
– Opinion of family, friends etc
Customer Satisfaction and Loyalty
27
Customer Satisfaction and Loyalty
If you fall below the consumer's expectations, then the consumer is
not satisfied, but if you exceed expectations then you can create
“customer delight.”
When customers are highly satisfied, they can become loyalists or

apostles who continue to purchase, who provide very positive
word-of-mouth, are insensitive to price
Mercenaries are satisfied but are not really considered loyal and
will move from company to company.
When customers are neutral or rather disappointed, they can

become defectors and quietly move to the competition or
terrorists, who spread negative word-of-mouth about their
experiences
Some dissatisfied customers become hostages and stay with the

company but are very unhappy; maybe because of a monopoly
28
Successful relationships with
Consumers
o The objective of providing
o Customer Value value is to retain highly
o Customer satisfied customers.
Satisfaction o Loyal customers are key
o Customer Trust • They buy more products
o Customer • They are less price
Retention sensitive
• Servicing them is cheaper
• They spread positive word
of mouth
Consumer Behaviour
Session 2
Chapter No 13
Consumer Decision Making and Diffusion of Innovations

RECAP of Session 1
• A consumer is one who has a specific need, targeted towards a want, coupled with a
demand (i.e. the ability & willingness to buy) E.g. washing machine
• Objective of profit-making organisations is to create new customers and retain them
Attracting Customers
• Creating customer value by ensuring benefits outweigh costs
• Benefits: product, services, image, personnel
• Costs: monetary, time cost, energy cost, psychological cost
Retaining Customers
• Creating satisfaction for customers by meeting or surpassing their expectations
• Gaining the trust and goodwill of the consumers such that it increases loyalty
RECAP of Session 1
• On the basis of satisfaction and loyalty, consumers can be categorised
• loyalists/ apostles (H-H)
• Mercenaries (H-L)
• Hostages (L-H) and
• Defectors/terrorists (L-L)
Consumer Behaviour
COURSE MINDMAP
• Overview of Consumer Behaviour

• Consumer Behaviour • Customer Value, Satisfaction and Loyalty
Session and Marketing Strategy
1 • 4Ps , STP and the Consumer

2

3


Session Perception
5
Learning Outcomes
o Understand the input, process and output variables of the Consumer

Decision making Model
o Decoding the external influences impacting consumer decision making
o Decoding the internal influences that impact consumer decision
making
o Demystifying the stages involved in the Consumer’s decision making
process
o Understanding the relationship between Consumer buying decisions
and Consumer Involvement
Why don’t marketers offer the same product to all consumers in a target
market?
Consider this..
WE
are all so
DIFFERENT
WE
are all so
DIFFERENT
The Diversity-Similarity paradox – we all are similar yet distinct

What do you think?
Do all consumers in a target segment have similar choices, tastes and preferences?
o What influences the decision making of work apparels of all these working women ?
Need, work profile, age, geographical location, income
What influences the decision making of work apparels of all these working women who
are in the same age and city?
Culture, personality, work profile
Consumer Decision Making:
Input-Output Model
Factors that influence consumer decisions and make them
different from other consumers
Factors: Cultural, Geographic, Demographic (age, education, gender,

occupation etc.) Economic (income, socio-economic status, etc.),
Psychological (Personality, Lifestyle, Needs and motivations etc.) and Social
(reference groups)
https://www.youtube.com/watch?v=5oyjXg4qWyA
Factors impacting Consumer Decision Making
External influences Internal influences
Demographics
Geography
Motivation
Family and Social status

Personality
Perception
Reference groups
Learning
Culture
Attitude
External Influences
impacting Consumer Decision Making
 Geographic variables country/nationality, region, state, clusters in a

city etc. influence food, clothing
 Cultural variables values, beliefs acquired by a person as he grows

and interacts with the environment around him
influence food, clothing, festivities
 Social variables
Families Family of orientation and procreation
Reference Groups groups of people who have a direct / indirect

influence on attitudes and behavior
Economic variables disposable income, savings, assets, borrowing

power, attitude towards spending and saving –
impacts choice of products and especially brands
Internal Influences
 Demographic variables
Gender Clothes, shoes, perfumes, watches, personal care
Age & generation Books, magazines, TV shows / OTT, clothes, shoes,

music, idols / influencers
Education Books, magazines, TV shows / OTT, organic and

healthy foods, higher education
Occupation e.g. lawyers, chefs, teachers – impact on clothing,

laptop, smartphones
Understanding Generations
Gen X Gen Y Gen Z
Movie Stars AB, SRK, HR, Shahid, Ranbir, Ranveer,

Salman, Aamir Ayushman Vicky, Alia,
Ananya, Deepika
Music artists Lata, Udit, Ar Rahman, Badshah, Neha, K
Alka, Srijit, Shankar, Pop, Daljit,
KK, Sunidhi Pooja…
Books Readers Digest Goosebumps, Harry Potter,
Hardy Boys Avengers, Percy
jackson
Comics Chanda Tinkle, Tintin DC Comics,
Mama, Chacha Jungle book
#ConsumerInsights
Understanding Generations
Internal Influences
Consumer Motivation Understanding the wide variety of human needs
and how it motivates them to look for products
or services which satisfy their needs
Consumer Perception How do human minds unconsciously screen out

information, interpret it, selectively
remember or forget what we wish to and make an
opinion about a product or a brand
Consumer Personality identify the consumer’s personality (distinguishing

human psychological traits viz. confidence,
dominance, sociability etc.) and connect with brand
personality
Consumer Learning How do we learn about new products and brands

and how does it induces changes in our behavior
Consumer Attitude A positive or negative disposition towards a

product or brand
Time for a break..
Consumer Decision-Making
Process
When was the last time you bought an electronic appliance such as an
Air Conditioner or a Washing Machine or a TV
Let’s re-visit that purchase.
Where did it start from?
https://www.youtube.com/watch?v=BhOSQyLvbuc
Consumer Decision-Making
Process
Need Recognition
• When a current product isn’t performing properly
• When the consumer is running out of a product
• When another product seems superior to the one

currently used
• JLT
Desired /
Actual / Preferred
Present State
Status
Information Search
Internal Information Search
• Recall information in memory
External Information search
• Seek information in outside environment

• Non-marketing controlled
• Marketing controlled
Factors impacting Information
Searches
Need Less Need More

Information Information
Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence
Evaluation of Alternatives
and Purchase
https://www.gadgetsnow.com/compare-washingmachine/LG-FHT1408SWL-
8-Kg-Fully-Automatic-Front-Load-Washing-Machine-vs-Bosch-WAT2846SIN-
8-Kg-Fully-Automatic-Front-Load-Washing-Machine-vs-IFB-Senator-Aqua-
SX-8-Kg-Fully-Automatic-Front-Load-Washing-Machine-vs-Samsung-
WW80K5210WWTL-8-Kg-Fully-Automatic-Front-Load-Washing-Machine
and Purchase
Evoked /
Consideration Set
Analyze product
attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
Post-purchase
Satisfaction / Dissatisfaction / Dissonance
Cognitive Inner tension that a

Dissonance
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
Post purchase Behavior
Consumers can reduce dissonance by:
 Seeking information that reinforces positive

ideas about the purchase
 Avoiding information that contradicts the
purchase decision
 Revoking the original decision by returning
the product
Marketing can minimize dissonance through effective
communication with purchasers.
Consumer Buying Decisions
and Consumer Involvement
Consumer Involvement is the degree of importance that the consumer attaches to
the purchase
Consumer involvement may be high when: product is expensive, socially visible,
risky, or when the purchase is very crucial, when there is no previous experience
Routine Limited Extensive

Response Decision Decision
Behavior Making Making
E.g. Daily groceries E.g. Apparels, shoes, books E.g. Automobile, House
Less More
Involvement Involvement
Factors Determining the Level of Consumer
Involvement
Previous Experience
Consumer interest
Perceived Risk of
Negative Consequences
Criticality or significance
of the Situation
Social Visibility
Marketing Implications
of Involvement
High-involvement Extensive and informative

purchases require: promotion to target market
In-store promotion,
Low-involvement eye-catching package
design, and good displays.
purchases require: Coupons, cents-off,
2-for-1 offers
Check Your Progress
The advice we seek from our physician or nutrition experts on

immunity boosters, is a part of ______________ stage of your
decision making
 Evaluation for alternatives
 Need recognition
 Information search
 Purchase
Key: c
Check Your Progress
Purchasing a new dress for an Annual Sales Kick-off Meet at office

will be a high involvement purchase on account of which of the
following?
 Social visibility
 Risk of negative consequences
 Previous experience of landing up in a shoddy outfit
 All of these
Key: d
Check Your Progress
The information that a consumer gets about a brand from his

reference groups or from the marketer himself, forms a part of the
________________ search
 internal
 external
 consideration
 Limited
Key: b
Consumer Behaviour
Session 3
Chapter No 3 - Consumer Motivation and Personality

RECAP of Session 2
• Input – Output Model of Consumer Decision Making emphasises on the Marketing
inputs, the Decision Making Process and the Behavioural output of the consumer
• Internal influences impacting the consumer’s purchase decisions: demographics,
motivation, personality, perception, learning, attitude
• Demographics: Age, education, occupation, gender, income, lifestyle, stage of life, gen
• External influences impacting the consumer’s purchase decisions: family & social
status, reference groups, culture
• 5 stages of Consumer’s Decision making Process: need recognition, information
search, evaluation of alternatives, purchase decision, post-purchase evaluation

RECAP of Session 2
• Need recognition: product not working, product run out, need for upgrade
• Information search: internal (memory) & external
• Five Conditions for information search: risk of failure, product knowledge, product experience,
interest in the purchase, confidence levels in the purchase
• Products are first in the awareness and unawareness set
• From the awareness set, they are further broken into: evoked / consideration set, inert /
indifference set or inept / unacceptable set
• Cognitive Dissonance: tension / anxiety post purchase when product not upto expectations
• Consumer Involvement: Routine / Limited / Extensive decision making
• Involvement depends due to five factors: risk of negative consequences / purchase is socially
visible / purchase is significant / critical, previous experience, interest in products, own confidence
Consumer Behaviour
COURSE MINDMAP


2

3


Session Perception
5
Learning Outcomes
• Understanding Consumer Needs and the Model of Motivation Process
• Understanding the hierarchy of Consumer Needs and its role in
Marketing Strategy
• Determining the dynamics of motivation

Discussion
Do Marketers create needs or do they

address the needs?
Do Marketers create needs or do they

make consumers aware of needs?
In a world where ordering food online was already
available to the consumers, what new did Zomato bring
to the table?
• Avoidance of ordering a “bad” meal

The “need”
• Information on neighbourhood
eateries
• A guide with pictures, menus, prices,

map locations and an experience-
based review / rating
The “solution”
The “solution”
https://youtu.be/4rtP-0Pu-pA
https://www.youtube.com/watch?v=fj1lInurghE
Model of the Motivation Process
Motivation as a Psychological Force
• Needs are circumstances or things that are wanted;

they direct motivational forces
E.g. Need for food, need for clothes..
• Motivation is the driving force within individuals
that impels them to act; usually due to a tension of
having a need which is unfulfilled. Consumers want
to reduce tension by fulfilling the need
Types of Needs
Customer Needs can be classified as:
• Stated Needs : Need as stated by the consumer …”I would like to buy a high
quality smart phone”
• Real Needs : To buy a smartphone which is considered / perceived as

premium
• Unstated Needs : Expects the smartphone to possess a good battery life,

camera, memory
• Delight Needs : Customer would like the dealer to offer a free memory card
/ free air pods or wireless headphones / extended warranty
• Secret Needs : To be seen as a tech savvy high end user

Types of Needs
• Physiological Needs
– Innate (or biogenic) needs that are considered primary needs or
motives
– Important for our biological existence
– E.g. food, water, air, shelter, basic clothing
• Psychological Needs
– Acquired needs learned in response to our culture or environment
– Usually learned from parents, social environment, interactions with
people
– Are generally considered secondary needs
– E.g. Branded products, Self-esteem, prestige, affection, achievement,
power
Both type of needs affect our buying decisions
Types of Needs
• Sensory Needs
– Consumers’ desire for sensory pleasures
– E.g. chocolates, ice cream, spa, lounge etc.
• Symbolic Needs
– How we see ourselves and how we would like to be seen by
others
– E.g. luxury brands
Time for a break..
Abraham Maslow’s Hierarchy of Needs
• Five basic levels of human needs
• Rank in order of importance from lower-level
to higher-level needs
• Consumers will fill lower-level needs before
the higher-level needs
• They will eat and seek shelter before the
need for friendships, education, yoga and
meditation
To which of Maslow’s needs does this Ad
appeal?
Abraham Maslow’s Hierarchy of Digital
Needs
The Dynamics of Motivation
 Humans constantly have needs , our needs are never fully

satisfied / once satisfied they reappear E.g. hunger, thirst,
clothing etc.
 New needs emerge as old needs are satisfied: hierarchy of needs
– we meet our lower level needs first and then move to higher
level needs
 Motivation is dynamic, it changes constantly with life
experiences, as we age, interact, pursue education, change jobs,
cities, acquire wealth, become ill, marry, divorce etc.
 Success and Failure of goals lead to new needs
E.g. You are unsuccessful in getting a management school of your choice so
your needs may change as you may explore pursuing a few years of work
experience first or pursuing a PG in some other stream
Manifest versus Latent Motives
• Manifest motives: motives that we are aware of, are known and
are freely admitted
• Latent motives: motives that are either unknown to the

consumer or are such that the consumer is reluctant to admit
them; perhaps do not conform to the society’s value system
Manifest versus Latent Motives
23
24
Rational vs Emotional Motives
• Rational / Utilitarian Motives:
Rationality implies that consumers select goals based on totally
objective criteria such as size, weight, price, or miles per gallon. A
conscious, logical reason for a purchase. A motive that can be
defended by reasoning or logical argument
• Emotional / Hedonic Motives:

motives imply the selection of goals according to personal or
subjective criteria such as feelings, emotions etc. A feeling
experienced by a customer through association with a product.
Check Your Progress
A brand is capable of fulfilling only one of the Maslow’s hierarchy of

needs
 True
 False
Key: False
Which of the following needs may be getting fulfilled by a Breakfast

Meeting for networking with the Client at the Taj?
 Social needs
 Self esteem or ego needs
 Physiological needs
 All of these needs
Key: All of these

Check Your Progress
Which of the following are more difficult yet more crucial to know?
 Manifest motives
 Latent motives
Key: latent
Baking a cake for your mom’s birthday could be a ________________, posting it on

FB or Insta is a _______________
 Social need, physiological need
 Social need, Self esteem need
 Physiological need, self actualisation need
 Social need, self actualisation need
Key: social, self-esteem

Consumer Behaviour
Session 4
Chapter No 3 - Consumer Motivation and Personality

RECAP of Session 3
• Unfulfilled need leads to tension, leads to a drive or motivation to want and demand for a product that can
satisfy the need, ending up in a purchase (behaviour)
• Needs can be classified as Stated, Real, unstated / implied, Delight and secret needs
• Needs can be classified as Physiological / innate / biogenic OR Psychological
• Needs can be classified as Functional, Sensory and Symbolic
• Abraham Maslow classifies needs as:
• Lower order: physiological, safety & security
• Higher order: social, ego / self-esteem, self actualisation
• Products usually address more than one needs from the Maslow’s hierarchy
• Marketers don’t create needs, rather they address consumer needs with innovative solutions
• Manifest motives: known to us, we admit them freely, aware of them
• Latent motives: unknown to us, reluctant to admit
• Motives can be Rational / Utilitarian / Objective OR Hedonic / Emotional / Subjective

Consumer Behaviour
COURSE MINDMAP


2

3


Session Perception
5
Learning Outcomes
• Understanding the nature of Personality
• Decoding the Freudian and Trait Theories of Personality
• To Understand how Personality reflects Consumers’ responses to marketing
messages
• To Understand how the Products and Services that Consumers use enhance
their Self-Images
• To Understand how Marketers seek to create Brand Personality-like Traits

What is ‘personality’
• The word personality comes

from the greek word
‘persona’ which means mask
• Personality is to that effect
the social mask we wear
“Deceptive masquerade or mimicry”
“Those characteristics that account for consistent patterns of

behaviour”
Personality and
The Nature of Personality
• The inner psychological characteristics that we call our ‘self ’ that

determines how a person responds to his or her environment
• Inner characteristics: qualities, attributes, traits, mannerisms, etc.
• These characteristics impact what we buy, how we consume, how we
respond to promotional messages
Study of Personality characteristics helps marketers in segmenting

consumers and targeting with distinct promotional strategies
Personality and
The Nature of Personality
• The Nature of Personality:

– Heredity, early childhood experiences, social and cultural
influences shape up personality
– Personality reflects individual differences: it’s a unique
combination of factors hence no two people are the same;
marketers look for similar personality traits
– Personality is consistent and enduring: can be predicted over time
– Personality can change: from early years to adult years to mid-
years, also due to life-altering events such as marriage, death of a
close one, divorce or any other trauma
2 Theories of Personality
• Freudian theory
– Unconscious or latent needs or drives are at the heart of human motivation
• Trait theory
– Quantitative approach to personality as a set of psychological traits
Freudian Theory
o Focus of traditional psychology was on the conscious mind
o Sigmund Freud likened the mind to an iceberg in which the smaller part
showing above the surface of the water represents the region of
consciousness while the much larger mass below the water represents
the region of unconsciousness
o In this huge domain - the unconscious - Freud believed were the urges,
passions, the repressed ideas and feelings - the great unseen forces
which exercise an control over the conscious thoughts and deeds of the
individual
o Freud was interested in stirring the hornet’s nest of human unconscious
9
Freudian Theory- three aspects of
personality
• Id
– Warehouse of primitive or instinctual
needs for which individual seeks
immediate satisfaction
– Physiological needs such as hunger, thirst
etc.
• Superego
– Individual’s internal expression of
society’s moral and ethical codes of
conduct
– Dives the individual to fulfill needs
in a socially acceptable function
• Ego
– Individual’s conscious control or internal
monitor that balances the demands of the
id and superego
10
personality
o Id: functions entirely in unconscious
• It is the irrational and emotional part of the mind

• At birth a baby’s mind is all id - want want want.
• It contains all the basic needs and feelings.
• And it has only one rule - the “pleasure principle” - “I want it and I want it all
now”
• It focuses on suppressed pleasure and basic instincts of consumers
11
personality
o Super ego: functions at all 3 levels of consciousness

• This might be called the moral part of the mind
• Its an embodiment of parental and societal values
• It stores and enforces rules; makes u anxious if u do not follow the rules
• It constantly strives for perfection.
The Superego tries to completely inhibit any Id impulse which it thinks is wrong.
Tries to get the Ego to act morally rather then just rationally. Tries to make the
person behave in a perfect fashion
12
personality
o Ego: functions at a very conscious levels of consciousness and might be called

the rational part of the mind
o The ego deals with the real world and operates via the “reality principle”.
It realises the need for compromise
o Its job is to get the pleasures the Id wants but to be more reasonable, and
less self-defeating about it.
o The ego is the ‘internal monitor’ that balances the needs of the id and the
superego
o The ego both opposes (denies instant gratification) but also helps the Id to
get what it wants (Ego acts as an agent for the Id in negotiating with
Superego, to help it get the pleasure it wants, but maybe with a bit of delay
or compromise).
13
personality
o Freud believed there needed to be a balance among the forces: ·
o Id too strong = bound up in self-gratification and uncaring to others
o Superego too strong = feels guilty all the time, may even have an
insufferably saintly personality
o Ego too strong = extremely rational and efficient, cold and boring
To capture this information, researchers focus on consumer purchases

and/or consumption situations, treating them as an extension of the
consumer’s personality
14
personality
o Marketers take ideas from Freud’s theory and apply it to target consumers with
advertising themes.
o Id too strong = If the desire of the psyche is our driving force, then appealing
to emotions is the most powerful way of persuading consumers to buy. The
premise was to short circuit their rational conscious and target them where
they were most vulnerable – the unconscious
Egs. Cadbury Silk, Mango Slice, Milano
o Other ads target the guilt component in consumers eg. Anti-smoking, life
insurance
o Some others target both the impulsive and the moral eg. Saffola Gold,
Imperial Blue
15
Trait Theory
• Trait - any distinguishing, relatively enduring way in which one individual differs
from another
• Trait theorists use personality tests that measure individual differences in terms of
how high/low the person is on specific traits for e.g.:
– innovativeness: how receptive they are to new experiences,
– materialism: their attachment to worldly possessions
– ethnocentrism: their likelihood to accept or reject foreign-made products
Personality traits
Consumer Social
Dogmatism
innovativeness character
Variety-
Need for Sensation
novelty
uniqueness seeking
seeking
Consumer Innovativeness
Willingness to innovate, open to new ideas, usually the first ones to
try a new product, product-line extension or new service
I’m not brand loyal, I often look at

I’m looking for the technological
best and latest in websites, blogs, social
consumer network sites for
technology information about
My friends often new technology
I always read the
ask me questions technology section in
before they the newspaper and
purchase new then go online to
technology check out new
products products
Need for Uniqueness
• The non-conformists: consumers who
avoid conforming to expectations or I’m happy when
standards of others other people tell
me that my taste
• E.g. the ones with unique clothes or is “different” and
hairstyle “uncommon”
I stop buying
brands when
everyone starts to
buy them
Variety-Novelty Seeking
• Consumers demonstrate or variety-seeking behavior

by switching brands often to experience new products
– E.g. Latest models of smartphones
Sensation seeking
• The need for varied, novel, and complex sensations and
experience
• And the willingness to take social and physical risks for
the sensations
Dogmatism
• A personality trait that reflects the degree of rigidity a person

displays toward the unfamiliar and toward information that is
contrary to his or her own established beliefs
• A dogmatic consumer will rarely consider the unfamiliar and
tend to be very close minded
• Marketers lure this type of customer with advertising appeals

that include celebrities and other experts and messages which
stress on factual and figures
Social character
• Social character could be inner-

directed or other-directed
• Inner-directedness
– rely on own values when evaluating products
and advertising appeals
– Innovators
• Other-directedness
– look to others to understand how to act or be
accepted
– less likely to be innovators
– Prefer ads that show approving social
environment
Consumer Materialism or possession
traits
Acquire and show off Self centered and

possessions selfish
Materialistic
People
Do not get greater

Seek lifestyle full of
personal satisfaction
possessions
from possessions
Consumer Ethnocentrism and
Cosmopolitanism
• Ethnocentric consumers feel it is wrong to purchase foreign-made
products because of the impact on the economy
• They can be targeted by stressing nationalistic themes
• A Cosmopolitan orientation; mostly due to multi-culturalism -
would consider the world to be their marketplace and would be
attracted to products from other cultures and countries.
Trait Theory
What kind of Consumer are you?
https://www.youtube.com/watch?v=Ebv2SZN2Jc8
Personality Tests
o Freud’s Personality Test:

http://www.celebritytypes.com/freudian-personality/test.php
o Personality Traits Test:

http://16personalities.com
Brand Personality
• Consumers attribute human-like traits or characteristics to
brands
• Examples
– Nike and athlete
– BMW is performance driven
– Airtel is for youth
Brand Personification
• Consumer’s perception of brand’s attributes for a human-
like character
• If Brand X was a person, can u describe it
• Which brand is seen as dependable, friendly, efficient,
intelligent and smart
Product Personality Issues
• Gender
– Some products perceived as masculine (coffee and toothpaste)
while others as feminine (bath soap and shampoo)
• Geography
– Actual locations, like Swiss chocolates and watches
– Fictitious names also used, such as Apple Valley or green tea
garden
• Color
– Color combinations in packaging and products denotes
personality
Personality and Colour
excitement, passion
purity, cleanliness, delicacy
sophistication, power and authority
nature
A brand personality framework
Brand personality
Self and Self-Image
• Consumers have a variety of enduring images of
themselves
• A single consumer will act differently in different
situations or with different people
• We have a variety of social roles
• Consumers select products congruent with this image
• Marketers can target products to a particular “self”
Differing self images
Actual Self-Image • How consumers see themselves
• How consumer would like to see

Ideal Self-Image themselves
Social Self-Image • How consumers feel others see them
Ideal Social • How consumers would like others to see

Self-Image them
• To fill the gap between your actual and ideal self-image, you would fulfill your
self-improvement goals like weight loss, better skin etc.
• To fill the gap between your social and ideal social image, you would do to things t
socially enhance your image or be cautious of socially conspicuous products
Consumer Behaviour
Session 5
Chapter No 4 - Consumer Perception

RECAP of Session 4
• Personality is the social mask we wear, our attributes, qualities, traits and mannerisms
which distinguish us from others and impact what we buy, how we consume, how we
respond to promotional messages
• Personality comes from our heredity, is individualistic, consistent & enduring & can change
• 3 components of Freudian Theory based on the unconscious mind
• Id: irrational & emotional part of it, impulsive, pleasure principle, uncaring, selfish
• Super ego: moral & righteous part, guilty, saintly, self defeating
• Ego: rational part, internal monitor, reality principle, cold & boring
• Trait Theory: innovativeness, uniqueness, sensation seeking, variety seeking, dogmatic,
social character (inner/outer), materialistic, ethnocentric / cosmopolitan

RECAP of Session 4
• Brand Personality: consumers attribute human like traits to the brands and try & identify
with them e.g. age, gender, colour (signifies traits), geography
• Brand Personality Framework: sincerity, excitement, competence, sophistication,
ruggedness
Consumer Behaviour
COURSE MINDMAP


2

3


Session Perception
5
Learning Outcomes
• To Understand the Sensory Dynamics of Perception
• To Learn About the Three Elements of Perception
• To Understand the Components of Consumer Imagery and Their Strategic
Applications
What do you think of this?
6
And what do you think of this?
7
Perception
o Perception is how we see the world around us
o Consumers act and react on the basis of their
perceptions, not on the basis of reality
o Consumer’s actions and buying habits are not impacted
by what actually is the reality but by what consumers
think is the reality
o Hence, to the marketers, consumer perceptions are
more important than their knowledge of objective
reality
Perception
Perception depends on two

things:
o each person’s own needs,

previous experiences and
expectations
o The physical stimuli from the

outside environment
Perception
o Perception is all about consumers’ ‘subjective’ understandings and
not about ‘objective’ realities
o The process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the
world
o Individuals are selective in which stimuli they hold on to, which stimuli
they subconsciously organize, and how they interpret the stimuli on the
basis of their individual needs, experience, expectations
o Hence, Perception is highly individualized
Perception
Role of Stimuli in Perception
o Attention - be it voluntary or involuntary; is a prerequisite for
perception to take place
o Attention occurs when we notice the stimuli
o Stimuli: a sensory input to any of the senses
o Marketing stimuli: advertisements, products, packaging, brand
names etc.
o Sensory receptors: human organs that receive these stimuli (eyes,
ears, nose, mouth, skin)
o Sensation: immediate and direct response of the sensory organs to the
stimuli
o Sensation or Response to stimuli will vary depending on:

o Quality of stimuli
o Quality of the individual’s sensory receptors
o Amount of exposure to stimuli
12
Discussion Questions
o Which ads do u remember seeing?
o What do u remember about them?
o Why do you think you remember them?

Role of Stimuli in Perception
oSensory Branding
oWhile most of marketing focuses on sight and sound, much research is
being done on smell and touch
Smell / fragrance
touch
14
Response to stimuli:
Sensation and Absolute threshold
o The absolute threshold is the lowest level at which an individual can
experience a sensation
o The point at which a person detects a difference between ‘something’
and ‘nothing’ is his absolute threshold for that stimulus
o Advertisers initially aim to reach this level
o Subliminal Perception: may be visual or auditory - hidden messages
which may not be visible to the conscious mind but are strong enough
for the subconscious mind. They may be embedded in an image or an
icon, or flashed suddenly
Response to stimuli:
Sensory Adaptation and Absolute threshold
o Increased exposure to a particular stimulus leads to Sensory
adaptation : getting used to a stimulation.
o As consumers get used to a stimulation such as an ad message and
may no longer notice it; hence the stimuli need to be changed
frequently b’coz the Absolute threshold level keeps on changing
o E.g. When exposed to a series of ads, say billboards on a highway, the
senses tend to become dulled, hence the absolute threshold needs to
be increased
Changing Absolute threshold:
Ambush Marketing and Experiential Marketing
oAmbush Marketing : placing ads in places where consumers do not expect to see
them and cannot readily avoid them
oExperiential Marketing : customers engaging and interacting with brands to

create emotional bonds with them E.g. LIVE engagements with the brand in a mall
17
COKE:
Changing the Absolute threshold
https://www.youtube.com/watch?v=XhMVWzVXNNk&t=160s
Aspects of Perception
Perceptual Selection
Perceptual Organization
Perceptual Interpretation
Selection Depends Upon:
Nature of the • Includes the product’s physical

attributes, package design, brand
stimulus name, advertising and more…
• People usually see what they expect to

Expectations see; based on familiarity, previous
experience or expectations.
• Desires, needs or wants for a product or

Motives service.
Why are Consumers likely to notice this Ad?
Perceptual
Perceptual
Selective Exposure Selective Attention Defense / Selective
Blocking
Distortion
•Consumers seek •Heightened •Screening out of •Consumers avoid
out messages awareness of stimuli which are being bombarded
which: stimuli which threatening with stimuli by
•Are pleasant meets their needs •Unconsciously ‘blocking’ or
•They can •Minimal distort tuning them out
sympathize awareness of information that of conscious
stimuli irrelevant is not consistent awareness
•Reassure them
of wisdom of to needs with their needs
their purchases •Consumers prefer and beliefs
•Avoiding the different •E.g. Cigarette ads
painful ones messages and
medium
Individuals carry biased pictures in their minds of the meaning of various stimuli
o People hold biased pictures in

their minds of the meanings of
Stereotypes various stimuli- these are called
Stereotypes Stereotypes
Physical Appearances o Sometimes we need to showcase
Physical Appearances a stereotype e.g. a traditional
Descriptive Terms Indian woman
Descriptive Terms
o At other times we need to break
First Impressions a stereotype e.g. a modern Indian
First Impressions woman
Halo Effect
o Triggers of stereotyping could be:
Halo Effect
physical appearance, descriptive
terms
Stereotypes
Physical
Appearances
Descriptive Terms
o People attribute qualities
of stereotypes to those who
resemble them; whether or
Stereotypes
not they do it consciously
Physical Appearances o Hence, attractive celebrity

or model may not increase
the ads’ effectiveness
Descriptive Terms
o A rational match between
the product and the
physical attributes of the
model is necessary
o Verbal messages reflect stereotypes

o Essential to keep in mind for
advertisers while choosing key words
Stereotypes or punch lines for their messages
Physical Appearances
Descriptive Terms
Marketing implication of Consumer Perception:
Brand Imagery
o Brand Imagery: consumer’s perceptions of all the

components of products, services and brands;
based on unique benefits that they offer
o For services it may be the colours, lighting,
ambience, tangible products etc.
o Perceptual Mapping: An analytical technique

that enables marketers to plot graphically
consumers’ perceptions concerning attributes of
specific brands
Perceptual
Map
28
Perception of Organic Foods
29
Consumer Behaviour
Session 6
Chapter No 9 – Reference Groups and Word-of-mouth

Chapter No 10 – The Family and its Social Standing
Consumer Behaviour
COURSE MINDMAP


Session
7 the consumer

Session
8


Learning Outcomes
• Comprehending the role and credibility of Spokespersons, Endorsers and Opinion Leaders
• Analysing the changing nature of families and family life cycle and its impact on consumer
purchase decisions
• Comprehending the socialization process and the role of Family as a Socialization Agent
• To Understand the dynamics of Family Decision Making and roles played by family members
• Understanding Social Classes, its measurement and relationship with Consumer Behavior
Reference Groups
• Groups that have a direct / indirect influence on attitudes and behavior
• People are strongly influenced by what others think and how they
behave
• Reference Groups could have:

o Formal source: person or medium paid for providing consumption-
related information
o Informal source: person known personally to the consumer or
some trusted person
• Word-of-mouth: when satisfied customers tell other people how much

they like / dislike a product; most credible source of information
• The most important reference group is family

Types of Reference Groups
Normative Influence: from groups to which a person naturally
belongs:
• family, friends, neighbors, peers, members of one’s community,
friendship groups etc.
• religious groups, professional groups, membership groups: to which
a person belongs to or can join
Comparative Influence: when people compare themselves to others

whom they admire or loathe:
• Aspirational groups : person hopes to join
• Disassociative groups : those groups whose values perceptions don’t
match with the individual
• Shopping groups, Virtual communities etc.
https://www.youtube.com/watch?v=vLOqnMdsUN4
Word-of-mouth, Opinion Leaders and e-wom
• Opinion Leadership: process by which a person regarded as a formal or
informal expert (opinion leader) influences others
• Word-of-mouth taking place online is known as word-of-web or e-wom
o Social networks : virtual communities e.g. FB, Twitter, Instagram
o Brand Communities: Gang-of-Dusters, Harley Davidson
o Weblogs: Blogs, chat rooms
Viral marketing: uses pre-existing social networks to create brand awareness and
engagement through video clips, interactive games, images, texts, emails etc
Opinion Leader Influence
Opinion Leader Influence
Gaurav Taneja – ‘Flying Beast’
– fitness youtuber
“An Indian Summer” – the Blog
Lego Ideas – Brand Community
Credibility of Spokespersons, Endorsers and
other sources
– Key conditions
• Source credibility: believability of the endorser, spokesperson or individual in the ad
• Synergy between endorser and type of product / service is very important
• Similarity between endorser and target audience is also very crucial
• While using celebrities in testimonials or endorsements, ensure that the message

matches the celebrities qualifications
• Credibility of the brand and persuasiveness of the message is impacted by the

credibility of:
• the salesperson
• vendor or retailer e.g. amazon
• medium of ad e.g. newspaper, magazine, youtube channel, website
Credibility of the Spokesperson
Family as a key Reference Group
• Family
– Two or more people related by blood, marriage or adoption residing
together
• Types of families
– Married couple
– Nuclear: married couple and at least one child
– Extended: nuclear family with at least one grandparent and/or other
relation living within the household
– Single-parent
• Changes in household spending patterns:

– More working women
– Time-constrained vs. Money-constrained families
Discussion
• At what age did u start purchasing products?
• How did u learn what to purchase and what not to

purchase?
• How were u influenced by marketing messages?

Family as a key reference group and a
socialization agent
• Socialisation
– Process of teaching people to behave in a way that is acceptable to their
society
– Family plays a key role in socializing family members – kids to adults
• Consumer Socialisation
– Process by which children acquire the skills, knowledge, attitudes and
experiences necessary to function as consumers
• Socialisation Agent
– Person involved in socialisation process due to close proximity, frequency of
contact and control over rewards and punishment given to an individual
– Mothers are stronger consumer socialisation agents and have an inter-
generational influence
– Marketers focus on early socialization E.g. Ads focusing on mothers as a
socialization agent for the family’s tastes and preferences
Sources of Socialisation
17
Consumer socialisation
• Parents teach their children basic values, moral and religious
principles as well as everyday skills such as manners and speech,
grooming, and interpersonal skills
• Parents teach children consumption skills - spending versus savings,
how to shop, and how to make purchase decisions
• Children today are exposed to marketing messages at a very young
age, especially through television advertising and the Internet.
– Pre-adolescent children get socialized by observing parents and

older siblings who become role models for them
– Teenagers and adolescents rely more on peers
E.g. Acne Ads will bring in peers and/or siblings
Family Decision Making
• Dynamics of Husband-Wife Decision Making

– Autonomic or solitary: husband or wife is the sole decision maker
– Husband-Dominated
– Wife-Dominated
– Joint or Equal participation
• Expanding Role of Children In Family Decision Making

– Children as influencers: Pester power
– Children as a primary market: Choosing items in supermarkets, Internet
mavens
– Children as future consumers
Family Decision Making: Buying roles
• A decision making unit consists of a no. of persons playing

different roles:
• Initiator : the person who first suggests
• Influencer: who influences the purchase decision
• Decision maker: who takes the final decision of what to purchase
• Buyer : who makes the actual purchase by visiting the store
• Payer : who has the authority to pay
• User: who consumes the product or service

 Different family members may be performing different roles in different
purchases
 A family may have more than one decision makers
The Family Life Cycle
• Family life cycle

– A composite variable that combines marital status, size of the family, age of
family members and employment status of head of the household
• Traditional Family Life Cycle

– Stage I: Bachelorhood: single men and women who have moved
out of their parents’ home and are living on their own
– Stage II: Honeymooners / Empty Nest / DINK: occurs
immediately after marriage before the arrival of the first child
– Stage III: Parenthood / Full Nest: occurs with the arrival of the
first child
– Stage IV: Post-Parenthood / Empty Nest: when the children have
left home
– Stage V: Dissolution: occurs with the death of one spouse
Traditional Family Life Cycle
Nontraditional FLC Family Stages
Alternative FLC Stage Definition/Commentary
Childless couples Increasingly acceptable with more
career-oriented married women and
delayed marriages
Couples who marry later in life Likely to have fewer or no children
Couples with first child in late 30’s Likely to have fewer children. Want
or later the best and live quality lifestyle
Single parents I High divorce rate - about 50% lead to
this
Single parents II Child out of wedlock
Single parents III Single person who adopts
Extended family Adult children return home.
Divorced adult returns home.
Elderly move in with children.
Newlyweds live with in-laws.
Discussion
o What types of products and ads are targeted to the

different stage of family life cycles?
o Bachelorhood
o DINK couples
o Full nest
o Empty nest
o Single parents
o Extended family
The division of
members of a society
into a hierarchy of
distinct status classes,
Social Class so that members of
each class have either
higher or lower status
than members of other
classes.
Social Class Measure and Distribution
SOCIAL CLASSES
Upper
Upper-middle
Middle
Lower
Social Class Measurement
Single-variable Composite-variable
indexes indexes
• Occupation • Socioeconomic
• Education Classification
• Income
• Durable
ownership
Socio-economic classification in India
•Education of chief earner

•Number of “consumer durables” owned by the family (from the predefined list of 11 durables namely Electricity connection,
Ceiling fan, LPG stove, Two-wheeler, Color TV, Refrigerator, Washing Machine, PC/Laptop, Car, AC and Agricultural Land)
Types of Indian Consumers
https://www.youtube.com/watch?v=3xrxO3YPrL0
Discussion
• What types of products are targeted to the

different social classes in India?
• What issues must marketers consider when

targeting their ads to these different social
classes?
Social Class and Product choices
• Clothing, Fashion, and Shopping

• The Pursuit of Leisure
• Saving, Spending, and Credit
• Media habits
Consumer Behaviour
Session 7
Chapter No 11 – Culture’s Influence on Consumer

Behaviour
RECAP of Session 6
• Reference Groups have a huge impact & high source credibility i.e. the source’s
persuasive impact due to expertise & trustworthiness
• Normative Influence groups : to which a person naturally belongs eg. Family, friends,
religious groups, membership groups
• Comparative Influence: when people compare themselves to others whom they admire or
loathe eg. Aspirational, disassociative, virtual groups, communities
• Choice criteria of Spokesperson: source credibility, celebrity qualifications, synergy b/w
endorser & product, endorser & consumer, image of retailer
• Family is a key reference group & socialization agent, consumer socialization of children
by observing parents
• Other socialization agents: peers, work, media, school, clubs, religion

RECAP of Session 6
• Family decision Making: husband or wife dominated, joint, solitary
• Family members in a decision making unit / D.M.U play 6 different roles: initiator,
influencer, decision maker, buyer, payer, user
• Stages of Family Life Cycle: traditional: Bachelorhood / Honeymooners / Parenthood – Full
Nest I and II / Parenthood with Adult kids (single or married) / Post Parenthood /
Dissolution
• Stage of Non traditional FLC: Single parents , Live-in couples, childless couples, couples
who marry late, first child in late 30s
• Social Classes: based on income
• Socio-economic classification (SEC) in India based on Education of Chief wage earner &
no. of durables owned
• Social classes determine our clothing, fashion, leisure, savings, credit etc
Consumer Behaviour
COURSE MINDMAP


Session
7 the consumer

Session
8


Learning Outcomes
• Understanding the role of Culture and its impact on consumption-related Attitudes,
Values, and Behavior
• To understand how Culture is learned and expressed in language, symbols and
rituals
• Analysing core Indian Values and their impact on Consumers
• Comprehending changing cultural trends in the Indian markets and its impact on
Consumers
The collective beliefs or
values, customs, norms
that serve to regulate the
Culture
consumer behavior of
members of a particular
society.
What is the core belief of the target user of
this product?
Do you consider this Product to be a “Good Morning”
beverage? Why or why not?
Culture influences..
• Promotional messages across the world reflect the
target audiences’ cultural values
• Culture influences
– Food: what to eat, where to eat, when to eat
Culture influences..
• Culture influences
– Clothing: what to wear, by occasions
– Which products are a necessity and which others are a luxury
– What to serve at a party, a marriage etc.
Discussion
• What are some of your core beliefs from

childhood?
• Where have you learnt them from?
• What are some of the new beliefs and values that

you have learnt from being out of home?
Culture is learned
Issues • To be a cultural characteristic, a
belief, value, or practice must be
• Enculturation and shared by a large group, by a
acculturation significant portion of the society
• Language and
symbols • Culture is transferred through
family, schools, houses of worship,
• Ritual
and media
• Sharing of Culture
Culture differs from one society to
another
– Supra-national level: which affects multiple societies
E.g. Asian countries : Collectivism,
Western countries : Individualism
– National level: shared core values, customs that represent the

core of the nation
E.g. Indian culture : emotional comfort, security, respect for
elders, humanitarianism etc.
U.S culture : achievement, success, individualism, material
comfort, freedom
– Group level: sub-divisions of a country, sub-cultures such as in

states
Culture is learned
• Enculturation
Issues – Through formal and informal
learning since the time when
• Enculturation and we are kids
acculturation – Difference between right and
wrong
• Language and – Consumer socialization by
symbols family and friends
• Ritual
• Acculturation
• Sharing of culture – As we move places, we must
learn the new or foreign
culture
– Differs depending on age,
interest in culture, desire to
be a part of the society etc.
Culture is learned
Issues
• Cultural values are reflected in
• Enculturation and languages, symbols – verbal and
acculturation non-verbal
• Language and • Symbols to communicate with
each other and to communicate
symbols
with customers
• Ritual • Verbal symbols: words
• Sharing of culture • Non-verbal symbols: figures,
colours, shapes etc.
Cultural Variations in Non-verbal Symbols
Symbols
Colors, animals, shapes, numbers, and music have varying meanings across
cultures.
Failure to recognize the meaning assigned to a symbol can cause serious
problems!
Global Cultures
• A Global Youth
Culture?
– Mass media and the
Internet have had an
impact of uniformity
among teens around
the world.
– They tend to watch
many of the same
shows, movies and
videos, listen to the
same music, and dress
alike.
– Technology is important
factor but U.S. youth
and brands no longer
lead the way.
Culture Is Learned
Issues
• According to our cultural beliefs
and values, we follow certain
• Enculturation and
rituals
acculturation
• A ritual is a type of symbolic
• Language and activity consisting of a series of
symbols steps
• Ritual • Rituals may be formal and
scripted (class room conduct) or
• Sharing of culture mundane routines (grooming,
food, music)
• Marketers realize that rituals
often involve products (artifacts)
Discussion Questions
• What are some rituals (religious, educational, social)

that you follow or are aware of?
• What artifacts or products are a part of that ritual?
• How do marketers influence the choice of these

artifacts?
Selected rituals and associated artifacts
SELECTED RITUALS TYPICAL ARTIFACTS
Wedding Red outfits, jewelry, gifts, sweets
Birth of child silver baby spoon, cradle, rocking

chair, bay products, gifts
Birthday Card, gifts, cake with candles
50th Wedding anniversary Catered party, card and gift, display

of photos of the couple’s life together,
cake
Graduation Pen, card, wristwatch, car /
motorbike, jewelry
Valentine’s Day Candy, card, flowers, gifts
New Year’s Eve Champagne, party, food, party outfits
Marketing Strategy and Values
Cause-Related Marketing
• Green Marketing (CRM) Khadi movement,
Cottage Emporium, Fab India,
• Cause-Related Marketing Sulabh
Social Marketing : P&G,
• Gender-Based Marketing Wipro, Bharti group setting up
schools, educating girls etc.
Elemental LED provides environmentally-

friendly efficient lighting products
Gender-Based Marketing
• Traditional versus Modern
Gender Orientation
• Gender roles are shifting,
with both genders making
many purchase decisions.
• Example: Today, women
influence 80% of all
vehicles sold
Gender-Based Marketing
• Retail Strategy
– Men are increasingly shopping for
household and other products
traditionally purchased by females,
and females are shopping for
“masculine” products such as lawn
mowers and power tools.
–
– Retailers have begun showing very
masculine men shopping for
household products and carry power
tools targeted at women.
– E.g. Pampers “it takes two” Ad

Campaign
Discussion
• What are some beliefs and values of the Indian society

at large?
• Which core values of the Indian society changed over

time?
• How do marketers try to address core values?
Core values of Indian society
Family Orientation Savings Festivities /
Large families Orientation Collective culture
Value-based brands preferred Irregular income, no pension Celebrate together
Down-trading (to economy Saving for marriages,
education, old-age Value deals in Festive season
brands)
Role of women Food and

Mythology
Restricted, submissive,
orthodox, non-working,
shopping
Stories, Music, toys
inferior to men, based on mythology Strong link with culture
Strong-willed, multi-taskers and region
Marriages Patriarchy / Gender

Belief in Arranged-marriages, Stereotypes Atithi devo bhava
marriage is lifelong Respect the guest
Male dominated, men
Disrespect for love marriages, earning, taking decisions Treat them well
re-marriages, out-of-caste
marriages, divorces, Household chores meant for Always welcome
separations, live-ins women, raising kids
Changing values of Indian society
Achievement Work Ethic

Mid-path to Tradition
Orientation High-stress, fast paced jobs
Urban, well educated, upper SEC
Time-constrained, convenience-
are neither too traditional nor
Mid to high end cars, clubs, driven,
permissive
foreign holidays fast food
Use of Hi-tech
Material Success Impulse Products
Emergence of young gratification High-end products, AI based
professionals, entrepreneurs, products, gadgets and
wealthy, educated, preference Compulsive shoppers, heavy appliances for home &
for luxury brands users of credit cards personal use
Role of Women
Gender Stereotypes Emergence of educated, Marriages
Men also contributing a bit to working, daring, challenge the More acceptance for love
household chores, raising kids conventions, dare to speak, marriages, re-marriages, out-
Women also contributing to stand for themselves, of-caste marriages, divorces,
household income More respect for women separations, live-ins
Values of Indian society
https://www.youtube.com/watch?v=CIeNxJIBjck
Discussion
• What are some beliefs and values of your state

/ region?
• How do these values govern your attitudes

towards products
• How do they govern your behavior or your

product choices?
Ethnic sub-cultures of India
Ethnic sub-cultures of India
What are the changing cultural values
that are being portrayed in this Ad?
Cadbury Ad
https://www.youtube.com/watch?v=yICX_ZQ86Mw
BIBA Ad
https://www.youtube.com/watch?v=aS_wwC8P12I
Consumer Behaviour
Session 8
Chapter No 6 - Consumer Attitude Formation and

Change
RECAP of Session 7
• Culture is the collective beliefs or values, customs, norms that serve to regulate the
consumer behavior of members of a particular society
• Culture is shared by a large group, by a significant portion of the society and transferred
through family, schools, houses of worship, and media
• Culture differs from one society to another – supra national / national / states etc.
• Enculturation: formal-informal learning since childhood from family n friends, right / wrong
• Acculturation: learning new culture as we move places
• Culture reflected in language, verbal symbols (words), non-verbal symbols (colours,
shapes, figures etc.), reflects in our food, clothing
• According to our culture, we follow some rituals (activities) – formal and informal – which
involve artifacts
RECAP of Session 7
• Core / traditional values of the Indian society: orientation towards family, festivities,
savings, mythology / religion . Spirituality, food and shopping, guests are God-like,
patriarchy, role of women, arranged marriages
• New / contemporary values of the Indian society: orientation towards self / individual,
achievement success, materialism, work, mid-path to religion, impulse gratification, role of
women increasing, gender stereotypes declining, inter-caste marriages, live-ins, divorces,
separation, LGBT couples etc.

Consumer Behaviour
COURSE MINDMAP


Session
7 the consumer

Session
8


Learning Outcomes
• To understand what is Attitude, its nature and characteristics, how is it learned
• Understanding select Models of Attitudes
• To understand how experience leads to the initial formation of consumption-
related Attitudes
• Decoding the various strategies of Attitudes Change
• Understanding changing beliefs and altering Behavior

What is Attitude?
• “Your attitude determines your direction”
• “The Power of your Attitude” ~ Stan Toler
• “Attitude is everything”~ Jeff Keller

What do you think about the Ad? The celebrity?
What do you think about the product? The brand?
Are your thoughts and feelings the same or different?
You may have disliked the Ad so much that it led
you to disliking the Product
A learned
predisposition /
inclination / tendency
to behave in a
Attitude consistently
favorable or
unfavorable manner
with respect to a
given object
What Are Attitudes?
• The attitude “object” : what are we measuring the attitude towards

– A product category / service
– A brand
– An ad / promotional medium
– A person / celebrity / model
– The price / packaging
– The retailer carrying the brand
• Attitudes reflect favourable or unfavourable evaluations of the object
• They motivate a consumer to either buy or not buy a product or brand
• Consumers are usually unreceptive to the unfamiliar; so when a new
product is introduced in an unfamiliar market, marketers have to build a
favourable attitude towards the product as well as the brand
Understanding Attitudes
 How do consumers form attitudes towards products or brands?
 Are consumer’s attitudes consistent with their behaviours

(purchase decisions / ratings/reviews/referrals, loyalty etc.)?
 Should marketers aim to influence the attitude towards a product

or a brand?
 Can marketers alter a consumer’s attitude?

Consumers learn Attitudes:
– Attitudes are a learned predisposition:

either through direct experience or from
others
– Consumer form favourable or unfavourable

attitudes basis their experiences and trial /
error experiments
– The more information they have about a

product / brand, the more likely they are to
form attitudes about it – positive or
negative
– Consumers form new attitudes and also

change existing attitudes
• Attitudes are consistent with
behaviours:
– Usually similar attitudes lead to same
behavior consistently e.g. attitude towards
Yoga and Ayurveda
• Attitudes change over time:
– When attitudes change over time; it is
expected that behavior will also change
with time
• Attitudes occur within situations:
– Sometimes behavior and attitudes are not
consistent due to ‘situations’ – those
events or circumstances that impact
– e.g. we eat whatever is available in the
canteen when we are starving
• Attitudes towards Products and Brands

– Marketers not only interested in attitudes towards brands but also
products; especially new ones
– A favourable attitude towards products is essential for brands too
• Sources of Attitude Formation:
– Personal experiences
– Family & friends
– Media: TV, radio, print, social media, online
Attitude Models
Tricomponent Attitude Model
Multi-attribute Attitude Model

Tricomponent Attitude Model
What we know or believe, what we feel, what we do
Cognition
The Tri-component Model
–What we know or think

Components about an object
–This knowledge is acquired
• Cognitive through our direct
• Affective experience and related
information from various
• Conative sources
–This knowledge then
becomes a belief
•A consumer’s emotions and

Components feelings about a particular
product or brand
• Cognitive •Feelings may be good or bad
• Affective
•Affect-laden experiences also
• Conative lead to emotions and feelings
The likelihood or tendency that

Components an individual will undertake a
specific action or behave in a
particular way with regard to
• Cognitive the attitude object
• Affective
It is the consumer’s intention-to-
• Conative buy
If reasons for ‘not-intending-to-

buy’ are researched well, it can
be very insightful
Cognitive Affective
A good Chocolate
chocolate melting
makes brings me
me more a
efficient tranquil
at work feeling
I eat a
chocolate post
lunch each day
Conative
Discussion
• Explain your attitude towards Netflix on the

tricomponent attribute model.
• Be sure to isolate the cognitive, affective, and conative
elements.
– What u know about Netlfix
– How u feel towards Netflix
– What u will do about it
Attitude models that
examine the
Multiattribute composition of
Attitude consumer attitudes
Models in terms of selected
product attributes or
beliefs.
Multi-attribute Attitude Models
• Attitude is function of the

Types presence of certain beliefs or
attributes.
• The attitude-toward- • Consumers will like a brand
object model of a product or service that
has an adequate level of
• The attitude-toward- those positive attributes
behavior model
• E.g. Attributes a house must
have: good location, sun-
facing balconies, vastu
compliant, gated society, club
house, play area, swimming
pool, courts etc.
How to measure Attitude using a
Multi-attribute Model
Types – Identifying key attributes

that the consumer will use
for evaluating the product
• The attitude-
toward-object model – Understanding consumer’s
rating of key brands on
• The attitude- these identified attributes
toward-behavior – Improving attitude
model •
towards your brand by:
Changing the perceived
importance of an attribute
• Adding an attribute either
unknown or ignored by
consumer
Attitude-toward-object Models
Multi-attribute Attitude Models
• Is the attitude toward

Types behaving or acting with
respect to an object, rather
than the attitude toward the
• The attitude- object itself
toward-object model • Corresponds closely to actual
• The attitude- behavior e.g. purchasing
• Evaluates attitude on the
toward-behavior basis of how likely are you to
model purchase brand X rather
than how highly do you rate
brand X.
Consumer attitude towards Additives in
Food products
https://www.youtube.com/watch?v=M_AM1zC3qcQ
Altering Consumers’ Attitudes
• Goal of Marketers
– Maintain existing positive attitudes of consumers
– Change strong and positive attitudes towards competition
• Changing consumer attitudes about products and brands:

– Difficult because consumers resist evidence that challenges
strongly held beliefs
Attitude Change
• Altering Components of the Multi-attribute Model

– Changing relative evaluation of attributes, new benefits,
absence of an ingredient
– Changing brand beliefs
– Adding an attribute
– Changing the overall brand rating
• Changing Beliefs about Competitors’ Brands

Strategies of Attitude Change
Changing the Basic Motivational Function
Associating the Brand with an Admired Group or Event
Resolving Two Conflicting Attitudes
Altering Components of the Multi-attribute Model
Changing Beliefs about Competitors’ Brands

Strategies of Attitude Change
Changing beliefs and altering behaviour
 Beliefs / Values
Descriptive thought that a person holds about something e.g. Belief in home remedies for
skin care, belief in tulsi & honey for curing throat problems etc.
 Attitudes
Favourable / unfavourable emotional feeling towards a product / service / person / idea etc
 Behaviour
Translates the Beliefs and Attitudes into action tendencies
https://www.youtube.com/watch?v=pWtenm8Aa_Q
https://www.youtube.com/watch?v=6lW37OedACU
Check Your Progress
Which of the following statements is false?
 Attitude is mainly towards the brand
 Attitude could be favourable or unfavourable
 Attitude is usually connected with whether or not the consumer buys the
product
 Attitude could be towards the product, the brand, the ad, the packaging etc.
Which of the following is NOT a component of the Tri-component Attitude Model

for assessing consumer attitude towards online courses
 Intention to get enrolled for an online course
 Emotions about lack of physical interaction in an online course
 Demographic profile of the learners
 Beliefs about saving on time, convenience etc

Check Your Progress
Which of the following statements is false?
 Attitudes are learnt
 We learn attitudes from family an friends
 We learn attitudes from media posts
 None of these
Which of the following can change the consumer’s attitude towards the product?
 Changing consumer’s beliefs about competition
 Changing consumer’s beliefs about importance of features
 Adding some new beliefs about the product or brand
 All of these
Consumer Behaviour
Session 9
Chapter No 5 - Consumer Learning

RECAP of Session 8
• An Attitude is a learned predisposition / inclination / tendency to behave in a
consistently favorable or unfavorable manner with respect to a given object
• Consumer’s Attitude could be towards the product / service, the brand, the ad, the
packaging, the brand endorser – anything related to the brand
• Attitudes are favourable / unfavourable evaluations which make consumers buy or not
buy the product
• Marketers not only interested in attitudes towards brands but also products; especially
new ones
• Consumers ‘learn’ attitudes through experiences, trial & error experiments,
information, family & friends and media
• Attitudes change over time and with situations

RECAP of Session 8
• Tricomponent Model of Attitude: Cognitive (knowledge & perceptions), Affective (emotions
& feelings) and Conative (actions & behaviours)
• Multi-attribute Model of Attitude: attitude based on various brand or product-related
attributes / features; consumers have a favourable attitude towards the brand which has
these attributes
• Marketers alter Consumer Attitudes by:
• Changing the need / motivational function
• Changing / Adding an ingredient, attribute, benefit
• Associating the brand with an admired group
• Changing beliefs about competitor brands
• Resolving two conflicting attitudes

Consumer Behaviour
COURSE MINDMAP


Session
7 the consumer

Session
8


Learning Outcomes
• Understanding Consumer Learning and its Four Elements
• Comprehending the three forms of Behavioral Learning and its strategic
application in Consumption Behavior
• Comprehending the Instrumental Learning and its strategic application in
Consumption Behavior
• Understanding Consumer Involvement it’s strategic implication on Consumer
Behavior
How do we Learn?
Learning
• Learning is the process by which individuals

acquire the purchase and consumption
knowledge and experience that they apply to
future related behavior
– Past knowledge and experience is applied to present
circumstances and behavior
– New knowledge and experiences gained in present influence
future behavior
• Some learning is intentional and some is
incidental
4 Elements of Learning
• 1. Motivation
– How motivated are we to learn about the product or service?
– If a consumer has a motivation e.g. for a fitness bike or watch, he will try
to learn about it
• 2. Cues
– If a consumer has a motivation, he will pick up the cues or stimuli e.g.
packaging, ads, store displays
• 3. Response
– If the cues are strong and effective, they will trigger a response by the
consumer, he may or may not purchase the product or service.
Irrespective of this, learning will still occur
• 4. Reinforcement
– The reward related to the response (purchase or not) - will the response
get repeated in future as well
– If the purchase experience is positive, it will get repeated in future
4 Elements of Learning
•We may all have a need but some are more motivated
to fulfill the need versus another
Motivation •Unfulfilled needs lead to motivation which triggers
learning
•Often a consumer doesn’t realise that they have a need
•Stimuli that directs a consumer’s motives
Cues •Price, styling, packaging, advertising and store displays

are cues designed to persuade consumers to fulfill their
needs
•Consumer’s reaction to a drive or cue, how consumers
Response behave after being exposed to the cue

•Whether or not the response culminates into a
purchase, learning can still occur
•Reinforcement is the reward – pleasure, enjoyment,
benefits that the consumer receives after buying and
Reinforcement using a product
•Increases the likelihood that a response will occur in
the future
Two Models of Learning
Conditioned or Behavioural or
Stimulus-response Learning Cognitive Learning
• Based on observable • Learning based on mental

behaviors (responses) that information processing
occur as the result of • Often in response to problem
exposure to stimuli solving
• Three forms of Behavioural
Learning:
 Classical Conditioning
 Instrumental or Operant
Conditioning
 Observational Learning or
Modeling
Behavioral Learning:
Classical Conditioning
Classical Conditioning:
• knee-jerk response that builds up through repeated
exposure and reinforcement
• creates an association between stimulus and response
(behaviour or feeling)
e.g. promotion and purchase
• A behavioral learning theory according to which an
established stimulus(e.g. music) and response (pleasant
feelings) is paired with another stimulus (the brand) to
elicit a known response
Classical Conditioning: Pavlov’s Model
• Conditioned learning results when a stimulus that is paired with another
stimulus elicits similar response
• Dogs salivate at the sight of meat paste
• Meat paste is the Unconditioned Stimulus (i.e. a stimulus that occurs
naturally in response to given circumstances)
• Salivation is the Unconditioned Response
• Pavlov created an experiment where he sounded a bell and immediately

applied a meat paste to the dogs; now
• so this bell became a Conditioned Stimulus (i.e. a stimulus that
became associated with a particular event or feeling due to repetition)
• After repeated pairings of the bell and the meat paste, the dogs got
conditioned to this stimulus and started salivating to the bell alone as
they did to the meat paste;
• so this became their Conditioned Response (i.e. response to a
conditioned stimulus)
Models of Classical Conditioning
Models of Classical Conditioning
Discussion
For the following brands:
– How have they used classical conditioning in their marketing?
– Identify the unconditioned and conditioned stimuli and the

conditioned response.
Strategic Applications of Classical
Conditioning
• Repeated exposure to the
Basic Concepts pairing between unconditioned
and conditioned stimuli
• Repetition increases the association
between them
• Stimulus • Increases the chance of
remembering
generalization
• Flip side is that Advertising
• Stimulus wearout could be a problem
when people start getting fed
discrimination up seeing the ad
• Marketers reduce this by

showing a range of different
ads with the same message
• E.g. Flipkart series of ads
Conditioning
• Having the same response to a
Basic Concepts stimuli which is not the same
but similar
• E.g. Dog salivating to not just
bells but coins as well
• Repetition • Moms getting ecstatic seeing
baby products and also baby
• Stimulus clothes
generalization • Sometimes the imitative “me-
too” products also succeed as
• Stimulus consumers confuse them with
the original product they have
discrimination seen
• Useful in:
– product extensions
– family branding
Conditioning
Stimulus generalization
Conditioning
Basic Concepts • Opposite of stimulus

generalization
• Selection of a specific
stimulus from similar
• Repetition stimuli
• Marketers want you to
• Stimulus think of their product
generalization differently than the rest
when you are looking at
• Stimulus the shelf in the grocery
store
discrimination • This discrimination is the
basis of positioning which
looks for unique ways to fill
needs
Operant Conditioning
• Instrumental (Operant) Conditioning: A behavioral
theory of learning based on a trial-and-error process
creates an association between response and outcome/
reward e.g. purchase and satisfaction
• The stimulus that results in the most rewarded
response is learned
• A favourable experience is the reward / reinforcement
which acts as an ‘instrument’ of teaching the
individual to repeat a specific behaviour
A Model of Instrumental Conditioning
Reinforcement of Behavior
Two types of Reinforcement / rewards influence the likelihood that the

response will be repeated
Positive Negative
reinforcement reinforcement
•Positive outcome •Negative outcome
•A good thing that happens •A bad thing that happens
which rewards the behaviour which encourages behavior
•Strengthens likelihood •E.g. You went out in the sun
•E.g. to get that flawless skin without using a sunblock &
sunglasses and got pimples or
a headache.
•So next time you go out, you
proactively use a sunblock and
take an umbrella or sunglasses
Strategic Applications of Instrumental
Conditioning
• POSITIVE REINFORCEMENTS:
• Customer Satisfaction: each time the customer has an experience

with the product or company, there is a positive reinforcement
• Personal connections with customers: Direct mail / message / email
to congratulate customers
• Rewards for referrals, rebates, coupons, toys
• Make servicescapes pleasant places to shop
Reinforcement of Behavior
Forgetting Extinction
• The reinforcement is • A learned response

forgotten which is no longer
• It can be brought reinforced, e.g. a
back by contacting consumer
consumers again unsatisfied with a
and giving them service
incentives to buy • It has become
extinct, it has been
unlearned
• The link between
stimulus and
reward has been
eliminated
Let’s Recap
Classical Conditioning vs
Instrumental Conditioning
https://www.youtube.com/watch?v=H6LEcM0E0io&t=186s
Observational Learning
• Observational Learning / Modeling:

• A process by which individuals learn behavior by observing
the behavior of others and the consequences of such behavior
• It occurs NOT through responses directly to the consumer but
by observation of the behavior and responses of others.
• For this type of learning, reinforcement must take place
• Consumers tend to imitate the behavior of those they see
rewarded, expecting to be rewarded similarly if they adopt the
same behaviour
• Marketers often use role models in their advertising so that
consumers can understand the rewards of purchasing the
advertisers’ products.
Observational Learning
“MONKEY SEE MONKEY DO”

Cognitive Learning
– Systematic evaluation of
information and alternatives
to solve an unfilled need or
unsolved problem
– Unlike Behavioural learning
which focuses on instinctive
responses to stimuli, Cognitive
learning involves complex
mental processing of
information
– consumers have a goal and
must search for information to
solve that problem
– Three stages of Cognitive
Learning :
• Gathering information
• Evaluation
• Behaviour / Action
Memory
• Sensory Store:
– Mental space in the human mind from where any sensory input enters
and lasts for just a second or two
– If it is not processed immediately, it is lost
– For marketers: although it is easy to enter a consumer’s sensory store, it
is difficult to make a lasting impression
Memory
• Short-term Store:
– Here the information is processed and held for a brief period
– Information decays quickly; needs to be refreshed
– If there is mental repetition of this information, it is transferred to Long-
term store, else it is lost
– Limited capacity to store information; limited to four or five items
• Long-term Store:
– Mental space where information is retained for extended periods of time
– It is more common for information in long-term store to last for days,
weeks or even years
– Unlimited, permanent storage
– Information can be recalled and retrieved from here
Consumer Behaviour
Session 10
Chapter No 15 –Consumer Research

RECAP of Session 9
• Learning is the process by which individuals acquire the purchase and consumption
knowledge and experience that they apply to future related behavior
• 4 elements of learning: motivation, cues, response & reinforcement
• Two Models of Learning:
A. Behavioral / Conditioned / Stimulus response Learning
B. Cognitive Learning
A. Behavioral / Conditioned Learning: 3 forms:
1. Classical Conditioning:
natural stimulus – baby, natural response- love and affection
conditioned stimulus – J&J, conditioned response – love and affection
- based on repetition, stimulus may get generalised, crucial to discriminate the stimulus
RECAP of Session 9
A. Behavioral / Conditioned Learning: 3 forms:
1. Classical Conditioning
2. Instrumental or Operant conditioning : trial & error experiments,
Positive reinforcements (positive outcomes) and Negative reinforcements (avoidance of
negative outcomes)
3. Observational Learning: learning by observing the behaviour of others and its
consequences, consumers imitate the behaviour of those who are rewarded
B. Cognitive Learning: mental processing of information
• 3 types of memory: Sensory store, short-term memory, long-term store

Consumer Behaviour
COURSE MINDMAP


Session
7 the consumer

Session
8


Learning Outcomes
• Developing the objectives of a Consumer Research
• Understanding the differences in primary and secondary data
• Differentiating between the Qualitative and Quantitative Consumer
Research Methods
Factors impacting Consumer Decision
Making
External influences Internal influences
Demographics Motivation
Family and Social status Personality
Perception
Reference groups
Learning
Culture
Attitude
The Importance of Consumer Research
o Marketers must understand customers to design
effective:
– marketing strategies
– offerings
– communication
o Consumer research promotes informed decision

making in the competitive landscape and in global
and cross-cultural markets
The Consumer Research Process
• Step 1
Define the Problem what is the background / what are the issues
Research Objective “what is to be researched and why”
• Step 2
Developing the Research Design:
– Data Sources to attain this objective, what is the information we

require and where can we get it from (secondary data
/ primary data / both)
– Research Method Qualitative / Quantitative / Mixed-method (both)

• Step 3
Designing the Data collection Instrument
1. Questionnaires
2. Observation Checklist
3. Discussion Guideline
- Contact / Data collection Which contact method would be most appropriate

method considering the target respondent:
1. Personal / face-to-face
2. Mail
3. Telephonic
4. Online
• Step 4
Sampling Plan
Sampling Unit whom should we survey - which respondents
Sample Size how many respondents should we survey and from which markets
Sample Selection how will the respondents be selected

• Step 5
Data Analysis editing, coding, tabulation and analysis of
the data
• Step 6
Presentation of Findings interpreting the data and presenting
the findings to the decision makers
Developing Research Objectives
o Defining purposes and objectives helps ensure an

appropriate research design
o A written statement of objectives helps to define the

type and level of information needed.
o Examples:
o To understand the key motivators for purchasing a protein bar
o To understand the consumers attitude towards air purifiers
o To understand the consumer’s perception of organic foods
o A comparative study decoding the key cultural beliefs related to food
consumption in the four southern states of India
Primary Data vs. Secondary data
What is Secondary Data?
– The data that has already been collected by some other sources,
for some other purpose, not meant for research in hand & is
readily available
– Includes internal and external data
When Secondary data is either unavailable or irrelevant, Primary data

needs to be collected
What is Primary Data?

– Original research conducted by individual researchers or
organisations for a specific research need or purpose in hand
– Data collected specifically for the research project in hand to

answer specific questions
Sources of Secondary data
1. Internal sources: sources within the organisation such as the following
:
– Sales reports
– Invoices
– Related data available with other departments, internal sales data
– Past marketing research conducted in the company
2. External sources: data obtained from agencies that have collected some
of the information required by us
- Government agencies e.g. Census data published by the Govt.
- Market Research Agencies such as AC Nielsen and IMRB
- Trade Associations / Industry confederations such as CII, FICCI
- Media reports
- Publications / Journals
- Information on the Internet
Primary Research may be conducted
using any of these methods
Qualitative Research Quantitative Research
Depth Interviews Observations
Focus Groups Questionnaire-based

Surveys
Projective Techniques
Survey Method of Obtaining Primary Data
Personal Interview survey

Telephone Interview survey
Mail survey email / online survey

16
Usage of Quantitative Survey Method
• Consumer Demographics
• Family Life Cycle and Socio-economic Status
• Consumer Personality / traits : Multi-attribute Trait Model
• Brand personification /Brand traits
• Consumer Perception: Perceptual mapping of brands / Consumer and brand

Imagery on key attributes
• Consumer Attitude: Tri-component Model and Multi-attribute Attitudinal

Model
• Intention- to – buy surveys
• Socio-economic classification (SEC)

Brand Personality
• Consumers attribute human-like traits or characteristics to

brands
• Examples
– Nike and athlete
– BMW is performance driven
– Airtel is for youth
Brand Personification
• Consumer’s perception of brand’s attributes for a human-
like character
• If Brand X was a person, can u describe it – gender,
geography, age, colour etc.
• Which brand is seen as dependable, friendly, efficient,
intelligent and smart
Perceptual
Map
19
Web Analytics
 Purchase behavior: mapping online traffic

– Tracking consumer purchases, almost-purchased(abandoned
shopping carts), returns or exchanges
– Shopping cart analysis – products selected, payment methods
preferred, abandoned carts
– Shopbots – FAQs of customers, brands often compared,
products bought together frequently
– What are the characteristics / demographic profiles of
different types of visitors
Web Analytics
 Online navigation:
– Recording the websites that consumers visit
– Level of engagement with the websites
– Keywords used in Search engine
– Landing page
– What features on websites are likely to persuade people to
register
– What factors draw the visitors to click on banner ads, pop-up
ads etc.
– When leaving a page, which pages do visitors look at next
Mobile Analytics
 Current geographic location and Mobile targeting:

– Smartphones and GPS devices create targeting opportunities
– Showrooming (using barcodes of products in physical stores to
check their online price and offers)
– Geofencing (Sending promotional offers to customers when
the customer is near or inside the stores)
Qualitative Research
Qualitative research is about:
• Data which is NOT in the form of numbers, its more verbose

• Exploring issues and understanding the reasons of a phenomenon
• Understanding the Reasons, the Whys and Hows
• Data is mostly unstructured
• Focuses on gathering verbal data rather in

the form of words, pictures, or objects
• Requires a face-to-face interaction between
the researcher and the respondent
• Is very time-consuming
• Is based on a small specific sample of
respondents
Qualitative Research
Qualitative research on reasons for:
• Hackathons towards identifying new product ideas, are through a focus

group discussion
• Consumer studies to understand product reactions to a new product or a

new Ad campaign
• To understand issues and challenges with a product, especially its usage,

storage, experience etc.
• Kind of PGPX courses that should be launched for Business Executives
• Issues and challenges in EV adoption
• Increase in preferences for AI-based products
• High Divorce rates in Urban Indian societies
• Increase in preferences for Live-in relationships

24
Primary Research may be conducted
using any of these methods
Qualitative Research Quantitative Research
Depth Interviews Observations
Focus Groups Questionnaire-based

Surveys
25
Qualitative Research Methods
Depth Interview (DI)
o A set of pre-selected respondents are interviewed individually (one-on-one)
by a professional interviewer who attempts to influence the respondent to
talk about the topic of interest
o E.g. Consumer lifestyle studies, Impact of single parenthood, divorce and
domestic abuse on consumer skills of children
Focus Group Discussion (FGDs)

o 8-12 participants invited to a Central Location for an objective discussion on the
concerned topic
o A moderator introduces the topic to the group & then guides the discussion in a
natural fashion
o E.g. reactions to a new concept/product/brand or a new ad, assisting in
advertising concepts, slogans, themes etc.
Common features:
o Interviewer will often probe to get more feedback and the session is usually recorded
o Online focus groups are growing
Disguised tests / indirect probing techniques to understand deeper feelings
towards products/brands, no direct questioning
Description
Word Words, phrases, adjectives to describe brands
Associations E.g. What is the first word that comes to your mind when you
hear IPL?
Sentence Incomplete sentences to complete with a word or phrase
Completion E.g. While choosing a PGPX specialisation course, the most
important consideration was ___________________
Photo/Visual Selecting a series of photos of consumers, brands, products,
for range of print ads, etc., to serve as stimuli. The respondents are
Storytelling asked to discuss or tell a story based on their response to a photo
or some other visual stimulus.
Role Playing Respondents given a situation and asked to “act out” the role(s),
often w.r.t a product or brand, or particular selling situation.
Usage of Qualitative Research
• Consumer Needs and Motivation: projective techniques: storytelling, sentence
completion, drawing images etc
• Consumer Perception: Perceptual selection and interpretation of stimuli etc.
• Creating stereotypes: Physical appearances, descriptive terms etc.
• Consumer Culture (first quali then quant)

Measurement of Motives
• Motives are difficult to measure because they are subjective in nature
• Researchers use qualitative research to uncover consumer motives because it
prods the consumer to “project” or “reveal” their subconscious or hidden motives
– Story telling: customers sharing real life stories regarding product usage
– Word associations: top-of-mind word recalls
– Sentence completions:
– e.g. When I buy food for my kids, the most important thing to me
is_______________________
Understanding Stereotypes / Brand User Images
– Photo sorts / Picture associations: identifying the picture with the
brand user / customer’s self image
– Drawing pictures: drawing sketches of brand users
Target Population
• Target Population is a term used to describe the entire set
of people who are of interest to the decision makers.
• It should not be confused with the population of a

geographical area.
• It should also not be confused with consumers.

Example
For a company planning to conduct a survey for a premium range of men’s
razors in Delhi & Mumbai, who would the target population be?
Govt. of India wants to conduct an intention-to-buy survey for Covid vaccines,

who would the target respondent be?
TEE
TYPE OF QUESTIONS
•Caselet based Questions
•Explanation of a concept with appropriate illustrations
•Explanation of a concept with an appropriate justification and illustrations
TIPS TO SCORE
•Explanation / Justification carries marks
•Illustrations (appropriate ones) carry marks. In case of confusion, please feel free
to quote examples discussed in the sessions
•Maintain the minimum word limit also
•Do NOT answer in phrases
•Structure and presentation of the answer does matter

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Consumer Behaviour

Industry and Research (5 years)

Consultant / Instructor / Subject Matter Expert (16 +years)

• Consumer Behaviour • Overview of Consumer Behaviour

• Consumer Decision • Consumer Decision-making Model & Factors

• Consumer needs and motivation

• Theories of Consumer Personality

• Consumer Perception • Sensory dynamics and elements of

• Reference Groups and word-of-mouth

• Cultural values and beliefs

• Consumer Attitude • Models of Attitude

• Four elements of Consumer Learning

Session • Consumer Research • Consumer Research Process

9 IAs – best of 7 DQs / Caselets:

Attend the Participate in

• In-session Chat Window

• Post-my-Query – on the Portal

• IA OR TEE – RELATED QUERIES

• Mail your queries to ngasce@nmims.edu

• ANY OTHER ACADEMIC / NON-ACADEMIC QUERIES

• Raise it with the Student Support Team

o Understand the Relationship Between Consumer Behavior and

“The purpose of the business is to create customers”

Need and Want for specific

o Decisions a consumer makes while making a purchase:

o What do we buy and why

o How do we as consumers search for products

o Consumer behaviors reflects the totality of consumers’ decisions

o Consumer behaviour refers to the actions and decision processes

• More products and services • Extensive information about

o Need to change Consumer Perception and brand’s

oConsumers have become self-reliant and adopted the DIY culture

oIncrease in food and beverages with high-protein claims

Successful Relationships with Consumers

• Total Customer Value / Benefits

• Total Customer Cost

• After using a product, a customer would be

• Expected performance measured by a customer

When customers are highly satisfied, they can become loyalists or

When customers are neutral or rather disappointed, they can

Some dissatisfied customers become hostages and stay with the

Consumer Decision Making and Diffusion of Innovations

• Objective of profit-making organisations is to create new customers and retain them

• Creating customer value by ensuring benefits outweigh costs

• Benefits: product, services, image, personnel

• Costs: monetary, time cost, energy cost, psychological cost

• Creating satisfaction for customers by meeting or surpassing their expectations

• On the basis of satisfaction and loyalty, consumers can be categorised

• loyalists/ apostles (H-H)

• Hostages (L-H) and

• Overview of Consumer Behaviour

• Consumer Decision • Consumer Decision-making Model & Factors

• Consumer needs and motivation

• Theories of Consumer Personality

• Consumer Perception • Sensory dynamics and elements of

o Understand the input, process and output variables of the Consumer

The Diversity-Similarity paradox – we all are similar yet distinct

Factors: Cultural, Geographic, Demographic (age, education, gender,

Family and Social status

 Geographic variables country/nationality, region, state, clusters in a

 Cultural variables values, beliefs acquired by a person as he grows

Reference Groups groups of people who have a direct / indirect

Economic variables disposable income, savings, assets, borrowing