SUBJECT: CONSUMER BEHAVIOUR

SUBJECT CODE: F010402T-B

UNIT 3

Influences & Consumer Decision making: Family

INTRODUCTION

A family is two or more people living together who are related by blood or marriage. It is a part
of a household which consists of individuals living singly or together with others in a residential
unit.

Consumer behaviour is influenced not only by consumer personalities and motivations, but also
by the relationships within families (family is a familiar social unit).

FAMILY LIFE CYCLE AND BUYING ROLES

It is important for a marketeer to know the family structure and its consumption characteristics.

He should be able to understand the family which is a subset of a household.

A household is made up of persons who live and occupy a housing unit. These include both,
nuclear and extended families.

A household is a basic consumption unit for most consumable goods.

Major items such as housing, automobiles, electrical appliances, washing machine, etc. are used
more by households than individuals. In a household, many items can be shared and possessed,
whereas individuals sometimes do not posses many such items individually.

FAMILY TYPES

Nuclear family: It consists of two adults of opposite sex living in a socially approved sex
relationship with their children. It consists of husband, wife and their offspring.

Joint family: It includes a nuclear family and other relatives such as parents of husband/wife,
aunts, uncles, and grandparents, also.

FAMILY BUYING INFLUENCES

Family is a social group. It is also an earning, consuming and decision-making unit. All purchases
are influenced by family members.

Family is a closely-knit unit, and the bonds in a family are more powerful than in other groups.

A reciprocal influence operates in all family decisions.

There are three main influences which are father, mother and other family members. Every
member has his own motives, beliefs and predisposition to the decision process.

Every member is influenced and influences other family members.

There is a reciprocal influence exerted in the decision process other family members.

Consumer socialisation is the process by which young people acquire the skills, knowledge and
attitudes relevant to their functioning as consumers. Interactions take place in a family which
develops tastes, preferences, shopping styles, choice of clothes to wear.

(a) Instrumental training: In this the parent teaches the children the value of food, which to
consume which to keep away from. What choice is to be made for clothes, what products to
refrain from. How to avoid dysfunctional behaviour.

(b) Modeling: When a child learns the behaviour by observing others. It can be consciously or
subconsciously learnt. One such example is smoking.

(c) Mediation: To make the children realise the facts by discussion, or by demonstration, or by
any other method available.

A MODEL OF CONSUMER SOCIALISATION

Family Decision-making

In a family there is the

Instrument role: Taken by the head of the family for the achievement of special goals.

Expressive role: Undertaken by the wife and other family members to provide emotional
support.

THE CONCEPT OF INTERGENERATIONAL CARRY OVER

Important buying roles are:

1. The instigator (initiator): Person who first suggests the idea of a product/service and initiates
the purchase process.

2. The influencer: Person having direct/Indirect influences, on final purchase decision.

3. The decider: Person who makes the final decision.

4. The purchaser (buyer): Person who actually purchases the product, pays for it, takes it home.

5. The consumer: User of goods/service.

Family Decision Stages

1. Problem Recognition:

 This stage involves the recognition that a need or problem exists within the
family that requires attention or resolution.

 The need or problem can arise from various sources such as changes in family
dynamics, environmental factors, or individual needs of family members.

 For example, the need for a new car may arise if the current vehicle is no longer
suitable for the family's transportation needs or if a family member requires a
specific type of vehicle for work or leisure activities.

2. Search for Information:

  Once the problem is recognized, family members may engage in information
search activities to gather relevant information and explore potential solutions.

 Information search can involve internal sources (e.g., personal experiences,

knowledge within the family) as well as external sources (e.g., online research,
consulting with friends or experts).

 Family members may share and discuss information, preferences, and

expectations to ensure that everyone's input is considered during the decision-
making process.

3. Evaluation of Alternatives:

 In this stage, family members evaluate the various alternatives identified during
the information search phase.

 Evaluation criteria may include factors such as cost, quality, features, brand
reputation, convenience, and how well the alternative aligns with the family's
values and preferences.

 Family members may weigh the pros and cons of each alternative and discuss
their preferences and concerns openly to reach a consensus.

4. Final Decision:

 The final decision stage involves selecting the best alternative or course of action
that meets the needs and preferences of the family.

 Family members may engage in negotiation, compromise, and consensus-

building to finalize the decision.

 Factors such as individual preferences, family roles, power dynamics, and

cultural influences may impact how the final decision is made.

 Once the decision is made, family members may take steps to implement the
chosen alternative, which may involve purchasing a product, engaging a service,
or taking specific actions to address the identified problem or need.

Husband-wife influence studies, classify consumer decisions as:

1. Wife-Dominant Decisions:
  These are decisions where the wife has a significant influence or control over the
outcome. Examples include the purchase of groceries, household items, and
food.

 These decisions may be consensual if both spouses agree with the wife's desired
outcome. Alternatively, they may be accommodative if there is a need for
conflict resolution, such as persuasion or bargaining by the wife to reach an
agreement.

2. Husband-Dominant Decisions:

 These are decisions where the husband has primary influence or control over the
outcome. Examples include major purchases like automobiles, life insurance, and
investments.

 Consensual husband-dominant decisions occur when both spouses agree with

the husband's desired outcome. Accommodative husband-dominant decisions
involve conflict resolution, where the wife may need to persuade or negotiate
with the husband to reach an agreement.

3. Syncratic Decisions (Joint):

 These are decisions made jointly by both spouses, where they share influence
and control over the outcome. Examples include decisions related to vacations,
choice of schools for children, and major household investments.

 Syncratic decisions can be consensual when both spouses agree on the desired
outcome. However, they may also require accommodation if there are differing
preferences or priorities that need to be resolved through negotiation or
compromise.

4. Automatic Decisions (Unilateral):

 These are decisions made unilaterally by one spouse without significant input or
influence from the other. They may involve routine or minor purchases or
decisions that one spouse typically handles without consulting the other.

 Automatic decisions can be consensual if the other spouse is indifferent or trusts

the decision-maker's judgment. However, if there is disagreement or
dissatisfaction, they may become accommodative, requiring resolution through
discussion or negotiation.

 Decisions may either be:

  Consensual: Everyone in the family may agree with the desired outcome.
Accommodative: Need conflict resolution by persuasion or bargaining.

 Element of power within the family is obtained from:

 Economic resources: Persons making greater economic contribution have more

economic power.

 Cultural norms: In a male dominated society—husband has greater powers.

 Expert power: More knowledge a person possess. Husband may know more
about cars— wife may know more about household items.

 Legitimate power: This depends on the role the family members play.

 Bargaining power: Power through give and take method.

 Reward/referent power: Giving rewards to others which are liked and

appreciated.

 Emotional power: Purchase decisions are influenced by emotions, sentiments

and feelings of one partner.

THE FAMILY LIFE CYCLE (FLC) CONCEPT

.1. The bachelor stage—young and single.

2. The newly married couples—young, no children.

3. Full nest 1—young, married, with child.

4. Full nest 2—older, married, with children.

5. Full nest 3–older, married, with dependent children.

6. Empty nest—older, married, with no children living with them.

1. The bachelor stage: Young and single is characterised by being young which can stretch upto
35 years of age and not married. Some singles live with their family, others live independently.
They have an average age of about 24 and are free from worldly cares, live an active and
carefree life. They do not have financial obligations. They manage their affairs themselves, and
are fond of sports and other recreational activities.

2. Newly married couples: Young no children (empty nest). After getting married, the life style
changes slightly. They lead a joint life style. They share new experiences and responsibilities.
Start spending on furnishing and household goods. They also tend to have a dual income and
spend heavily on outings, vacations, luxury, restaurants, meals, etc.

3. Full nest 1: Young married with child. With the addition in family, purchases are
concentrated on baby foods, clothings, medical care, health products. A change is brought
about in the lifestyle and most activities revolve round the care of the child. Discretionary funds
are also reduced.

4. Full nest 2: Older married with children. More children lead to more expenses. Children start
going to school and there is more expenditure on books, stationery and college fees. Toys,
bicycle, insurances also become a part of the expenses, parents start spending less on
themselves.

5. Full nest 3: Older married with dependent children. Income is high at this stage. Parents
grow older. They become experienced buyers and are less interested in new product purchases.
Expenditure high due to replacement buying luxury products.

6. Empty nest: Older married with no children living with them. Financial position stabilises and
there is no expense on children. The couple is free to enjoy their own pursuits and spend on
luxury or self-improvement items and medical care.

7. Solitary survivor: Older single retired people. Retired people living alone after the death of a
partner. Life becomes lonely and income may reduce due to retirement. This again changes the
consumption pattern and living style of old people.

INFLUENCES & CONSUMER DECISION MAKING: REFERENCE GROUP

  Reference groups are social groups that individuals use as a standard for evaluating their
attitudes, beliefs, and behaviors.

 These groups can be formal (e.g., clubs, organizations) or informal (e.g., friends,
colleagues), and they exert influence through social comparison and normative
pressure.

 Reference groups provide individuals with information, guidance, and validation for
their consumption choices. For example, a person may choose certain brands or
products to align with the preferences of their peer group.

Types of reference groups

1. Membership Reference Groups:

 These groups consist of individuals with whom a person has direct interactions
and affiliations.

 Examples include family members, friends, colleagues, and social circles.

 The influence of membership reference groups is significant because individuals

often seek approval, acceptance, and conformity within these groups.

2. Aspiration Reference Groups:

 Aspiration reference groups represent individuals or groups that a person aspires

to emulate or belong to.

 Celebrities, influencers, prestigious organizations, or successful individuals often

serve as aspiration reference groups.

 Consumers may adopt behaviors, styles, or products associated with these

groups to align their self-image with their desired identity or lifestyle.

3. Dissociative Reference Groups:

 Dissociative reference groups are those individuals or groups from whom a

person wants to distance themselves.

 Negative stereotypes, undesirable behaviors, or characteristics associated with

these groups may prompt individuals to avoid their influence.

 Examples may include criminal gangs, extremist organizations, or social circles

with negative reputations.
 4. Normative Reference Groups:

 Normative reference groups establish the norms, values, and standards that
guide behavior within a society or community.

 They define what is considered acceptable, appropriate, or desirable in a given

culture.

 Compliance with the norms set by these groups ensures social acceptance,
approval, and conformity.

 Examples include cultural or religious groups, professional associations, or social

movements that shape societal norms and expectations.

Reference Groups, Social Influence and Social Power

These are five bases of social power. These are:

1. Reward Power: This is about the ability to provide rewards, which can range from
tangible (like money or gifts) to intangible (such as recognition or praise). In consumer
behavior, this can manifest in various ways, such as loyalty programs offering discounts
or exclusive benefits for repeat purchases, or social acceptance gained through owning
certain products like fashionable clothing.

2. Coercive Power: This involves the ability to administer threats or withhold rewards to
influence behavior. In marketing, this might be seen in advertising campaigns that
create a fear of social rejection if one doesn't use a certain product, or in limited-time
offers that create a sense of urgency to purchase.

3. Legitimate Power: This power comes from the perception that a person or group has
the right to influence others based on cultural or societal norms. Marketers often
leverage this by associating their products with values or ideals that are widely accepted
within a particular culture or social group.

4. Referent Power: This is based on the identification and desire to be associated with a
particular group or individual. In consumer behavior, this can drive purchases of
products or brands that are associated with desirable social groups or celebrities, as
consumers seek to emulate their lifestyles or gain acceptance from those they admire.

5. Expert Power: This arises from the perception of someone as knowledgeable or

authoritative within a certain domain. In marketing, this can be seen in endorsements
by experts or influencers, as consumers are more likely to trust and accept information
from sources they perceive as credible and knowledgeable.
 Factors Affecting the Influence of Reference Groups

1. Informed and Experienced Individuals: When a person lacks firsthand experience or

information about a product or service, they tend to rely more on reference groups for
guidance and decision-making. This is because they may feel uncertain about their own
judgment and seek validation or reassurance from others who have more knowledge or
experience. In such cases, the influence of reference groups becomes particularly
strong, as individuals look to these groups for advice, recommendations, and social cues
regarding what products to buy or how to behave.

2. Reference Group Credibility: The credibility of a reference group plays a crucial role in
determining its influence on consumers' beliefs, attitudes, and behaviors. A reference
group that is perceived as highly credible—meaning it is trusted, respected, and
considered knowledgeable or authoritative in relevant areas—will have a greater impact
on consumer decision-making. Consumers are more likely to adopt the opinions,
preferences, and behaviors of credible reference groups, as they view them as reliable
sources of information and guidance. Additionally, when evaluating product quality or
making purchase decisions, consumers are more inclined to rely on information
provided by credible reference groups, as they perceive it to be more accurate and
trustworthy.

REFERENCE GROUP INFLUENCE ON PRODUCTS AND BRANDS

1. Influence on Product and Brand (Public Luxuries): In this category, products are
consumed publicly and are highly conspicuous. Reference group influence is likely to be
strong for both the product and the brand. For example, if smoking is the norm within a
particular social group, there might be a strong preference for a specific brand of
cigarettes among its members.

2. Influence on Product only (Private Luxuries): These are products that are consumed
privately but are still considered luxurious and less common. While the product itself
may be influenced by reference groups to some extent, the brand might not be as
influenced. For example, once a family buys a home computer, others within their social
circle might be influenced to adopt the same product, but the brand might not be a
significant factor in this adoption process.

3. Influence on Brand only (Public Necessities): Products in this category are widely
consumed and highly visible, but there may not be much variation in the product itself
within a reference group. However, the brand may still be subject to influence by
 reference groups. For example, while most people wear wristwatches, the specific
brand of watch they choose may be influenced by their reference group's preferences.

4. No Group Influence (Private Necessities): These are products that are both consumed
privately and are necessities. They have low social visibility for both the product and the
brand, so reference group influence is weak or absent. Consumers are likely to make
choices based on personal preferences and product attributes rather than group
influence. For example, products like bread, which are essential but not socially
conspicuous, are unlikely to be influenced by reference groups.

Reference Group Applications in Marketing

The three broad applications of reference group influence on buyer behavior through
advertising:

1. Use of celebrities for product endorsements: Advertisers often leverage celebrities to

endorse their products, expecting that consumers will react positively to the association
between the celebrity and the product. Celebrities are seen as representing an idealized
life, and their endorsement can influence consumer perceptions and behavior. This
approach aims to capitalize on the admiration and trust that consumers may have for
celebrities.

2. Use of experts for product endorsements: Another approach is to use experts in the
field to endorse products. These experts help prospective consumers evaluate the
advertised product by providing their professional opinion or expertise. This strategy is
particularly effective for products that require technical knowledge or expertise for
evaluation, as consumers may trust the judgment of recognized experts.

3. Use of spokespersons for product endorsements: Advertisers also utilize spokespersons

who represent the "common man" or everyday consumers. This approach aims to
demonstrate to consumers that people like themselves use and are satisfied with the
product. By featuring relatable spokespersons, advertisers seek to establish a
connection with their target audience and increase credibility and trust in the product.

These reference group appeals serve two primary benefits to advertising:

 Providing frames of reference for consumers: By using celebrities, experts, or common

individuals as endorsers, advertisers provide consumers with reference points to
evaluate the product. Consumers may perceive the product more favorably if it is
associated with someone they admire or trust.
  Increasing brand awareness: Utilizing well-known figures or relatable spokespersons
draws attention to the product and can increase brand awareness. The endorsement by
these individuals can enhance the visibility and recognition of the brand, ultimately
influencing consumer perceptions and purchase behavior.

MEANING OF SOCIAL CLASS

 Social class usually is defined by the amount of status that members of a specific class
possess in relation to members of other classes.

 Social-class membership often serves as a frame of reference for the development of

consumer attitudes and behaviour.

 A social class is a hierarchical division of a society into relatively distinct and

homogeneous groups with respect to attitudes, values, lifestyles, etc.

Characteristics of Class System

1. Hierarchy: Social class involves a hierarchical structure where individuals or groups are
ranked based on factors such as wealth, occupation, education, and power. This
hierarchy establishes a clear social order with some groups holding more privilege and
influence than others.
2. Economic Status: Economic status, which refers to income, wealth, and access to
resources, is a key component of social class. Individuals in higher social classes typically
have greater economic resources and opportunities compared to those in lower classes.
3. Access to Education: Education plays a significant role in social class as it affects
opportunities for advancement and social mobility. Higher social classes often have
better access to quality education, leading to greater opportunities for career
advancement and upward mobility.
4. Diversity and Multidimensionality: Social class is not solely determined by one factor
but is multidimensional, encompassing various aspects such as economic status,
education, occupation, and cultural capital. Different combinations of these factors
contribute to individuals' placement within the social class hierarchy.
5. Homogeneity and Group Identity: Social classes often exhibit some degree of
homogeneity within the group, with members sharing similar lifestyles, values, and
cultural norms. This sense of group identity reinforces social boundaries and distinctions
between different classes.
6. Dynamic Nature: Social class is not fixed but rather dynamic, as individuals and families
may experience changes in their socioeconomic status over time due to factors such as
 education, career success, inheritance, or economic downturns. Social mobility, both
upward and downward, is a key feature of social class dynamics.
7. Social and Behavioral Restrictions: Social class can impose certain behavioral
expectations and restrictions on individuals within a particular class. These expectations
may include norms regarding dress, speech, leisure activities, and social interactions,
which contribute to maintaining class boundaries and reinforcing social hierarchies.
SOCIAL CLASSES AND THEIR BUYING PATTERNS
Upper Upper Class: This is the most wealthy, aristocratic class having a lot of property. This is a
small-sized segment and has to be targeted for novelty, expensive and luxury goods by the
marketeers. This class has access to property, prestige and power. They have a lot of
discretionary income and can buy the right product and services, and socialise with the right
people. They are an attractive market segment for leisure goods, designer clothes, foreign
travel and special services.
Lower Upper Class: They are lower in status than the upper upper class and try to imitate their
lifestyle. They are known by their conspicuous consumption and are also a smaller target
market for luxury goods. They try to acquire the habits and lifestyle of the upper upper class.
The products used by the upper class trickle down to this class and is known as the trickle down
effect. The upper class becomes a reference groups and the members of the lower upper class
strive to achieve a higher status in the society. The marketeers knowing this, formulate a
strategy for this group or class of people.
Upper Middle Class: This class has achieved success in life and consists of managers,
professionals, lawyers, professors. They are also owners of medium-sized business. They
therefore take membership of clubs and have a broad range of cultural interests. They are hard
working and want to reach higher in society. Their aspirational group is the upper class.
Lower Middle Class: The common man represents this group. Some are highly paid workers
and small business owners and may not have a very high education. This class aspires for
respectability. They wish to have well maintained houses in good neighbourhoods. Marketeers
sell products, to this group, which have respectability and social acceptance in the society.
Upper Lower Class: They live for the present. They and the lower lower class constitute the
major percentage of population. Their buying habits are influenced by their cultures and sub-
cultures. Their social activities influence the purchase of product.
Lower Lower Class: They live in utter poverty. Their main concerns to fulfill their basic
physiological needs. They need shelter, clothing, food and go for economical purchases. Their
first priority is the price and they cannot afford any unnecessary expenditures.
CULTURE
culture refers to the set of values, beliefs, customs, traditions, norms, and symbols shared by a
group of people and passed down from generation to generation. Culture plays a crucial role in
shaping individuals' attitudes, perceptions, preferences, and behaviors related to consumption
and purchasing decisions.

CHARACTERSTICS OF CULTURE

Culture is a Pattern of Behavior : Culture refers basically to thestyle of behavior. This style is
found to be present in the behaviors of the majority of people living in a particular culture.

The Invisible Hand of Culture : Culture is like the air we breathe. It is so obvious that we cannot
escape from it. It pervades our lives so much so that we cannot actively feel its impact.

Culture Satisfies Needs : Individuals are having different types of needs. They have need for
food, clothing, shelter, medicine, love and belongingness, esteem and status, achievement, and
a number of physical, social, and psychological needs.

Learned: Culture is primarily learned through socialization processes within a particular society
or group. Individuals acquire cultural values, beliefs, norms, and behaviors from family, peers,
media, and other social institutions.

Shared: Culture is shared among members of a society or group, providing a common

framework for understanding and interacting with the world. Shared cultural norms and values
shape individuals' consumer behaviors and influence their preferences and choices.

Dynamic: Culture is not static but rather dynamic and constantly evolving over time. It reflects
ongoing social, economic, technological, and environmental changes, as well as interactions
with other cultures. Consumer behavior is influenced by these dynamic cultural shifts and
adaptations.

Symbolic: Culture is characterized by symbols, rituals, and meanings that hold significance for
individuals and communities. These symbols and rituals often carry deep cultural meanings and
influence consumer perceptions, preferences, and behaviors. Brands often leverage cultural
symbols and rituals in their marketing strategies to connect with consumers.

Influential: Culture exerts a significant influence on consumer behavior, shaping individuals'

values, beliefs, attitudes, and preferences regarding products and consumption. Cultural factors
play a crucial role in determining what products consumers buy, how they use them, and how
they evaluate their consumption experiences.

Multifaceted: Culture encompasses various dimensions, including language, religion, values,

norms, customs, traditions, and social institutions. These diverse cultural elements interact and
intersect to shape consumer behavior in complex ways. Marketers must consider the
multifaceted nature of culture when developing marketing strategies and targeting diverse
consumer segments.

Relative: Cultural norms and values are relative and vary across different societies, regions, and
social groups. What may be considered acceptable or desirable in one culture may be perceived
differently in another. Marketers must recognize cultural differences and adapt their
approaches accordingly to effectively engage with diverse consumer audiences.

CONSUMER DECISION MAKING

TYPES OF BYUING BEHAVIOUR

1. Complex Buying Behavior:

 This type of behavior occurs when consumers are highly involved in a purchase
decision and perceive significant differences among brands. They conduct
extensive research, compare alternatives, and carefully evaluate various factors
before making a decision.

 Examples include purchasing a new car, buying a house, or selecting a college or

university.

2. Dissonance-Reducing Buying Behavior:

 Dissonance-reducing buying behavior occurs when consumers are highly

involved in a purchase decision but perceive little difference among brands.
 After the purchase, consumers may experience post-purchase dissonance or
regret and seek reassurance that they made the right decision.

 Examples include buying appliances, electronics, or furniture where there are

many similar options available.

3. Habitual Buying Behavior:

 Habitual buying behavior occurs when consumers have low involvement in a

purchase decision but perceive little difference among brands. They make
routine purchases out of habit or convenience without much consideration of
alternatives.

 Examples include buying everyday items like groceries, household cleaning

products, or personal care items.

4. Variety-Seeking Buying Behavior:

 Variety-seeking buying behavior occurs when consumers have low involvement

in a purchase decision but perceive significant differences among brands. They
may switch brands frequently in search of new experiences or to avoid boredom.

 Examples include purchasing snacks, beverages, or clothing where there are

many options available, and consumers may enjoy trying new products or styles.
CONSUMER DECISION MAKING PROCESS

1. Recognition of Need/Problem Recognition:

 The process begins when consumers recognize a need or problem that needs to
be addressed. This need may arise from internal factors (e.g., hunger, thirst,
desire for self-improvement) or external stimuli (e.g., advertisements,
recommendations, social influences).

2. Information Search:

 After recognizing a need, consumers actively seek information about potential

solutions. They may gather information from various sources, including personal
experiences, word-of-mouth recommendations, online research, reviews,
advertisements, and comparisons of different options.

3. Evaluation of Alternatives:

 Once consumers have gathered relevant information, they evaluate the available
alternatives based on various criteria such as price, quality, features, brand
reputation, availability, and personal preferences. This stage involves comparing
the pros and cons of different options to determine the best choice.

4. Purchase Decision:
  After evaluating the alternatives, consumers make a decision to purchase a
particular product or service. This decision may be influenced by factors such as
perceived value, affordability, convenience, brand loyalty, and emotional factors.
Consumers may also consider external factors such as sales promotions,
discounts, and incentives.

5. Purchase:

 In this stage, consumers make the actual purchase transaction, either online or
in-store. They may encounter additional factors that influence their purchase
decision at the point of sale, such as customer service, product availability,
payment options, and delivery options.

6. Post-Purchase Evaluation:

 After making a purchase, consumers evaluate their decision and the product or
service they have acquired. They assess whether the product meets their
expectations, fulfills their needs, and delivers the promised benefits. Positive
experiences may lead to satisfaction and repeat purchases, while negative
experiences may result in dissatisfaction, returns, or complaints.

7. Post-Purchase Behavior:

 Depending on their level of satisfaction, consumers may exhibit various post-

purchase behaviors. Satisfied customers are more likely to become loyal
customers, engage in positive word-of-mouth recommendations, and repurchase
the product or service in the future. Dissatisfied customers may seek refunds,
exchanges, or express their dissatisfaction through complaints or negative
reviews.
CONSUMER DECISION RULE OR INFORMATION PROCESSING TECHNIQUES

1. Compensatory Decision Rule:

 In this rule, consumers consider all relevant attributes of a product or service

and then evaluate the options based on a weighted average of these attributes.
This means that a product can compensate for weaknesses in one attribute by
excelling in another. For example, if a smartphone has a lower battery life but
superior camera quality, a consumer may still choose it if the camera quality is
more important to them.

2. Conjunctive Decision Rule:

 With the conjunctive decision rule, consumers establish minimum acceptable

standards for each attribute of a product or service. Any option that fails to meet
these minimum standards on any attribute is eliminated from consideration. For
instance, if a consumer is looking for a durable laptop, they might eliminate any
options that have less than 8GB of RAM, less than 256GB of storage, or a battery
life of fewer than 8 hours.
3. Disjunctive Decision Rule:

 In contrast to the conjunctive rule, the disjunctive decision rule involves setting
high standards for at least one important attribute. Any option that excels in this
attribute is considered acceptable, even if it fails to meet other criteria. For
example, if a consumer prioritizes camera quality in a smartphone, they may
consider any option with a camera resolution above a certain threshold,
regardless of other features.

4. Lexicographic Decision Rule:

 The lexicographic decision rule requires consumers to rank the attributes of a

product or service in order of importance. Then, they choose the option that
performs best on the most important attribute, ignoring other attributes. This
rule simplifies decision-making by focusing on the most critical factor. For
instance, a consumer might prioritize brand reputation when purchasing a laptop
and choose the option from the most reputable brand, regardless of other
features.

5. Affect Referral Rule:

 The affect referral rule is based on consumers' emotional responses or gut

feelings toward a product or brand. Instead of conducting a thorough evaluation
of attributes, consumers rely on their positive or negative feelings toward the
product or brand. This rule is often used when consumers have low involvement
in the decision or when decisions are made quickly. For example, a consumer
may choose a particular brand of chocolate because it evokes positive childhood
memories, without considering other brands.
CONSUMER COMMUNICATION

MEANING OF COMMUNICATION

The English word ‘communication’ is derived from the Latin communis, which means common
sense. The word communication means sharing the same ideas.

MEANING

Customer communication is how companies interact with consumers at each touchpoint along
the customer journey—from the ads that catch their attention to the post-purchase customer
experience.

1. Targeted Audience: Consumer communication is directed towards specific consumer

segments or target audiences based on demographics, psychographics, behaviors, or
other criteria relevant to the product or service being promoted.

2. Persuasive: It often involves persuasive techniques aimed at influencing consumer

attitudes, perceptions, preferences, and purchasing decisions. Marketers use various
communication channels and messaging strategies to persuade consumers to buy their
products or services.

3. Two-Way Interaction: While traditional advertising has been primarily one-way

communication, modern consumer communication increasingly emphasizes two-way
interaction. This includes social media engagement, customer feedback mechanisms,
and personalized communication channels where consumers can actively participate in
the conversation.

4. Multi-Channel: Consumer communication occurs through multiple channels, including

advertising, public relations, direct marketing, social media, email, websites, mobile
apps, and more. Marketers use an integrated approach, leveraging various channels to
reach consumers across different touchpoints.

5. Emotional Appeal: Effective consumer communication often taps into consumers'

emotions, aspirations, desires, and needs. Emotional appeal can create stronger
connections with consumers, leading to brand loyalty and repeat purchases.

6. Informational: Consumer communication provides consumers with relevant information

about products, services, features, benefits, pricing, promotions, and other relevant
details that help them make informed purchasing decisions.
 7. Cultural Sensitivity: Successful consumer communication takes into account cultural
differences, norms, values, and preferences to ensure messages resonate with diverse
consumer groups and avoid unintended offense or misunderstanding.

8. Feedback Loop: Consumer communication involves a feedback loop where consumers

provide responses, opinions, reviews, and suggestions that inform future marketing
strategies and product/service improvements.

9. Brand Image Building: It contributes to building and maintaining the brand image and
reputation by shaping consumer perceptions, associations, and experiences with the
brand over time.

10. Measurable Outcomes: Consumer communication efforts are often evaluated based on
measurable outcomes such as brand awareness, brand recall, engagement metrics, sales
performance, customer satisfaction, and return on investment (ROI).

Components of Communication

 Sender: The objective of communication is deemed as a message transmitted by the

sender. The sender encodes the message in form of words, pictures, orally and transfers
it through media or a channel. The message sent by the sender consists of the subject
matter which the sender wants to transmit to the receiver, and it could be in oral,
written, or as gestures.

 Media or channel: Communication could be either personal or impersonal. It is personal

when two people interact with each other face to face by talking and listening to each
other and the air and the sound waves act as the media. The media is the channel
through which the information is transmitted. Communication could be impersonal
when the communication takes place through print media in form of newspapers,
magazines, brochures, and more or through broadcast audio-visual means like the TV,
radio, websites, and more.

 Receiver: Once the message is sent through the media, it reaches the receiver, who
decodes the message to extract meaning from it. After having decoded and
comprehended the message, the receiver reacts with feedback.
  Feedback: Once the message has been received by the receiver, the receiver sends back
feedback that moves from the receiver to the sender, which creates a loop. Feedback
expresses whether the message has been appropriately understood by the receiver. It is
also a means by which the sender gets to know of the receivers’ reaction to their
message.

 Noise: Noise is what disturbs and interferes with the communication process, and acts
as a barrier to effective communication and it can affect every stage of the
communication process. It acts as a barrier to effective communication and it could be
internal as well as external. It is internal when it concerns the sender or the receiver,
who are not able to understand or pay attention to the message. External noise occurs
when there is a disruption in the environment in form of loud noise or when there is a
snag with the media such as weak signal, sound waves, air, etc.

SENDER Source of Information

Encoding Use of Language
Message medium Mode of communication
decoding Received the same meaning
Receiver Consumer or any individual
response Any individual action after the receiving of message
feedback Provides information on positive and negative response
Noise Confused situation arises when communicators fails to transmit the right
message to the receiver (consumer).

CONSUMER SATISFACTION

Meaning of consumer satisfaction:-

Customer satisfaction is defined as a measurement that determines how happy customers are
with a company's products, services, and capabilities

Customer satisfaction information, including surveys and ratings, can help a company
determine how to best improve or changes its products and services.

Consumer satisfaction refers to the degree of contentment or fulfillment that a consumer

experiences after making a purchase or using a product or service.

It is a subjective assessment of whether the product or service met, exceeded, or fell short of
the consumer's expectations.

Several factors contribute to consumer satisfaction:

1. Product or Service Performance: The primary factor influencing consumer satisfaction is the
actual performance of the product or service. If it functions as expected, meets quality
standards, and fulfills the consumer's needs, it is likely to result in satisfaction.

2. Customer Service: Positive interactions with customer service representatives can

significantly impact consumer satisfaction. Prompt and helpful responses to inquiries, efficient
issue resolution, and overall positive customer service experiences contribute to satisfaction.

3. Value for Money: Consumers assess whether the perceived value of the product or service
justifies the cost. If they feel they received good value for the money spent, it enhances
satisfaction.

4. Reliability and Durability: Products that are reliable, durable, and have a longer lifespan
contribute to higher satisfaction. Consumers appreciate products that require minimal repairs
or replacements.

5. Convenience: Convenience in terms of product availability, ease of purchase, and

accessibility can contribute to satisfaction. Convenient shopping experiences, userfriendly
interfaces, and hassle-free processes enhance satisfaction.

6. Brand Reputation: Consumers often associate satisfaction with the reputation of the brand.
Positive brand perceptions, trustworthiness, and a history of delivering quality products or
services contribute to overall satisfaction.

7. Communication and Transparency: Clear and transparent communication from the company
regarding product features, pricing, and policies can positively impact satisfaction. Consumers
value honesty and openness in their interactions with businesses.
8. Innovation: Consumers may derive satisfaction from innovative features or improvements in
products or services. Companies that stay ahead of the curve and offer something new and
exciting can enhance customer satisfaction.

9. Customization and Personalization: Tailoring products or services to individual preferences

contributes to satisfaction. Personalized experiences, recommendations, and customizable
options can create a positive impression.

10. Post-Purchase Support: Adequate support after the purchase, such as warranty services,
product support, and follow-up communications, can contribute to long-term satisfaction.