Consumer Behavior

Rajeev Chawla


Consumer Behavior
Why Consumer Behavior?
• How do we make Consumers buy our products with the reality that we live in a hypercompetitive economy • Is there any understanding of consumers that can bear influence on their behavior • Are there patterns of Consumer Behavior and can we study them? • Do Men, women, children and senior citizens display any specific behavior which we can study and utilize? • Do Consumers have buying patterns in their behavior? • Do Consumers have a set way of imbibing or learning their habits and can we imbibe these in them?

Rajeev Chawla


Consumer Behavior
The Changes due to the Digital Revolution?
• Consumers have more power than before • Consumers have access to information as never before • Marketers can offer more services and products than ever before • Marketers and consumers have increasing interactivity and an immediate address • Marketers can gather more information about consumers today • The impact is beyond your Personal Computer to the WWW

Rajeev Chawla


evaluating and disposing of products and services that they expect will satisfy their needs Rajeev Chawla 4 .Definition Consumer Behavior : Consumer Behavior is defined as the behavior that consumers display in searching for. using. selecting.Consumer Behavior . purchasing.

others Segmentation. Targeting & Positioning The Marketing Mix Consumer Value & Satisfaction Customer Retention Rajeev Chawla 5 .Consumer Behavior Consumer Behavior : Seeped in The Marketing concept • • • • • • • The Marketing Orientation Consumer Research: Secondary & Primary Data Consumer Research: Syndicated Services.

Consumer Behavior Consumer Behavior : Consumer Research: Secondary Data: • Census Data • Syndicated Services • Database Marketing Primary Data: • Qualitative research  Focus group interviews  Projective techniques • Survey Research • Experimental Research • Observational Research Rajeev Chawla 6 .

DECISION MAKING What is a decision? Why do we need to study DM Models? What is Hobson's Choice? DM: Required when Consumers are provided with a choice when there was originally none Rajeev Chawla 7 .

DECISION MAKING .cont 3 Levels of Consumer Decision Making: Extensive Problem Solving Limited Problem Solving Routinised Response Behavior Rajeev Chawla 8 .

cont 4 Views of Consumer Decision Making: • • • • An Economic View A Passive View A Cognitive View An Emotional View Rajeev Chawla 9 .DECISION MAKING .

Subculture & culture Rajeev Chawla 10 . Other noncommercial sources 4. Channels of Dist Sociocultural Environment 1. Family 2. Product 2. Price 4. Informal Sources 3.THE CONSUMER DECISION MAKING MODEL INPUT: External Influences Firms Marketing Effort 1. Promotion 3. Social class 5.

Attitudes Experience Rajeev Chawla 11 . Personality 4.THE CONSUMER DECISION MAKING MODEL PROCESS : Consumer Decision Making Need Recognition Prepurchase Search Evaluation Of Alternatives Psychological Field Motivation 1. Learning 3. Perception 2.

Repeat Purchase Post purchase Evaluation Rajeev Chawla 12 .THE CONSUMER DECISION MAKING MODEL OUTPUT : Post decision Behavior Purchase 1. Trial 2.

Product 2. Attitudes 1.THE CONSUMER DECISION MAKING MODEL INPUT: External Influences Firms Marketing Effort 1. Repeat Purchase Evaluation Of Alternatives Post purchase Evaluation Experience Rajeev Chawla 13 . Price 4. Channels of Dist Sociocultural Environment 1. Personality 4. Learning 3. Perception 2. Subculture & culture OUTPUT : Post decision Behavior PROCESS :Consumer Decision Making Purchase Need Recognition Prepurchase Search Psychological Field Motivation 1. Other noncommercial sources 4. Family 2. Informal Sources 3. Trial 2. Social class 5. Promotion 3.

POST PURCHASE BEHAVIOR INDIVIDUAL: Cognitive Dissonance Tries to Reduce Dissonance BRAND OWNER: Tries to reduce Dissonance too After Sales Service Referencing Communication Sops for Repeat Purchase Rajeev Chawla 14 .

DECISION MAKING EXERCISE What Stimuli would you build to help Customer in their Decision Making Model to decide in favor of your business if it were: 1. 10. 3. 8. A Chinese Restaurant A Fast Food restaurant An International Airport An Educational Institute A Global Corporate Organization‟s office A Shopping Mall A Car Dealership Showroom A Multiplex A Discotheque A Book store Rajeev Chawla 15 . 4. 2. 7. 6. 9. 5.

LEARNING TYPES OF LEARNING THEORIES: • Behavioral OR The Stimulus-Response theories • Cognitive OR Mental Process theories ELEMENTS OF LEARNING THEORY: • Motivation • Cues • Response and • Reinforcement Rajeev Chawla 16 .

LEARNING Motivation: The basis is NEEDS and GOALS The action impetus Cues: These are the Stimuli They are built into communication as wall as the Marketing Mix Response: Reinforcement Rajeev Chawla 17 .

Form and Category Extensions – Family Branding – Licensing • • • • Generalizing Usage Situations Stimulus Discrimination Positioning Product Differentiation Rajeev Chawla 18 .LEARNING APPLICATIONS Applications of Classical Conditioning: • Repetition • Stimulus Generation – Product Line.

LEARNING APPLICATIONS Applications of Operant Conditioning: • Reinforcement of Behavior OR Customer Satisfaction • Forgetting and Extinction • Reinforcement Schedules • Shaping • Massed V/s Distributed Learning Rajeev Chawla 19 .

LEARNING APPLICATIONS Cognitive Learning: How do Consumers store Information: Structure of Memory Sensory store Short term Store Long term store Rehearsal and encoding Retention Retrieval Rajeev Chawla 20 .

LEARNING MEASURABILITY • Response to Advertising • Brand Loyalty and measure • Brand Equity Rajeev Chawla 21 .

9. 5. 4.LEARNING EXERCISE What Stimuli would you build in line with Classical & Operant Conditioning for: 1. A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant A Car Dealership Showroom Rajeev Chawla 22 . 6. 7. 2. 10. 8. 3.

Motivation Rajeev Chawla 23 .

Individuals strive to reduce this tension………… Rajeev Chawla 24 ..MOTIVATION What is Motivation? • The driving force within individuals that impels them to action An unfulfilled need and tension produce this driving force………….

NEEDS MASLOW & the HEIRARCHY Of Needs Self Actualization Self Esteem Social Needs Safety + Security Physiological Rajeev Chawla 25 .

recognition. water. status) 3 Social needs (sense of belonging. shelter) Rajeev Chawla 26 2 1 . love) Safety needs (security.Maslow’s Hierarchy of Needs 5 Selfactualization needs (self development and realization) 4 Esteem needs (self esteem. protection) Physiological needs (Food.

Needs & Goals NEEDS: All individuals have needs Innate Needs – Physiological Needs (Primary Needs) Needed for sustenance Acquired Needs – Secondary Needs They result from the individuals subjective psychological State and from relationships with others GOALS: What is a goal? Desired outcomes for individuals. groups or an entire organization Sought after results of motivated behavior Rajeev Chawla 27 .

prevailing cultural norms and values and the goal’s accessibility in the physical and social environment GOALS must be socially acceptable and physically accessible NEEDS and GOALS are interdependent. They cannot exist in isolation of the other Rajeev Chawla 28 .cont GOALS Generic goals Product specific goals GOALS are selected by individuals depending on their personal experiences. physical capacity.Needs & Goals .

Needs & Goals - cont
MOTIVATION can be positive or negative in direction POSITIVE Action NEGATIVE Action

GOALS too can be positive or negative A positive one is towards which behavior is directed and A negative one is where behavior is directed away from


Rajeev Chawla


Needs & Goals - cont

NEEDS are never completely satisfied New needs emerge when old needs are satisfied Success and Failure Influence Goals
Frustration: DEFENSE MECHANISMS: Aggression Rationalization Regression Withdrawal

Identification Repression Projection

Rajeev Chawla


Product Versus Need Orientation – Needs & Goals
Daimler Benz We make luxury cars

We make automobiles which give our customers the sense of achievement they richly deserve We make hockey players perform better and more effectively


We make hockey sticks

Hilton Group

We rent rooms and run 5 star hotels

We genuinely care for the comfort of our guests, ensure the finest personal service and facilities, a warm ambience and an experience that fulfills even the unexpressed needs of our guests We create outstanding professionals with incisive minds through our curriculum and methodology making them the best of class professionals in their careers 31


We teach management studies

Rajeev Chawla

THE MOTIVATION MODEL Learning Unfulfilled Needs.Wants And Desires Tension/ Anxiety Drive Behavior Goal or Need Fulfillment Cognitive Processes Tension Reduction Rajeev Chawla 32 .

Needs – Goals Relationship Means-end Analysis is a way to view the needs-goals paradigm Set goals – based on personal values Select means (behaviors) that are believed to help achieve their desired end Value Good Health Means Stay trim Low sugar/cal Low cholesterol Hygienic clothes Product Running shoes/Bicycles/Treadmill Sugar-free /diet colas/diet beers too White meats/Fish Washing Machine To promote a specific product by associating it with a generic goal Rajeev Chawla 33 .

MOTIVES AROUSAL OF MOTIVES • • • • Physiological Arousal Emotional Arousal Cognitive Arousal Environmental Arousal Rajeev Chawla 34 .

Market Segmentation Rajeev Chawla 35 .

Degrees of Break-down • • • • • • Mass Marketing Segmentation Niche Marketing Micro-niche marketing Individual marketing (Customization) Mass Customization Rajeev Chawla 36 .

g.g.: Ford.Degrees of Market Break-down • Mass Marketing The seller engages in mass production. This could be low-cost. and discretionary options that some segment members value E. Coca-Cola Segmentation A market segment consists of a group of customers who share a similar need or needs.: car manufacturers offer several variants to the same model • Rajeev Chawla 37 . or a luxury experience Marketers advise to offer segmented customers a flexible offering consisting of a naked solution containing the product and the service elements that all segments members value. and mass promotion of one product for all buyers E. mass distribution.

the niche is not likely to attract other competitors. the nicher gains certain economies through specialization and the niche has size. and growth potential Whereas segments are fairly large and normally attract several competitors. Marketers usually identify niches by dividing a segment into sub-segments An attractive niche is characterized as follows: The customers in the niche have a distinct set of needs: they will pay a premium to the firm that best satisfies their needs.Degrees of Market Break-down • Niche Marketing A Niche is a more narrowly defined customer group seeking a distinctive mix of benefits. profit. niches are fairly small and attract only one or two competitors Rajeev Chawla 38 .

Micro niches obviously have high profitability as customers are willing to pay more to have their needs met Individual marketing (Customization) Customization is the concept of a “segment of One”.Degrees of Market Break-down • Micro-niche marketing A Micro-niche is a very small segment of the market which has very few customers. This is a low-volume high-profit segment and the product is made specifically to cater to the needs of a single customer E. Diet Programs Mass Customization Increasing number of customers are demanding Customized offerings for the price of a Mass product E.: Harley-Davidson bikes.g. Paint Companies • • Rajeev Chawla 39 . Automobiles abroad.g.: Dell computers. A niche within a niche could also be called a micro-niche.

Towns Class A. Graduate. 12 – 18. female Single. Government. Rs. Divorced. Widowed Under Rs. 35 – 49. 25 – 35.Segmenting Consumer Markets SEGMENTATATION /SEGMENTATATION VARIABLES BASES GEOGRAPHIC Region City Size Density of Area Climate DEMOGRAPHIC Age Gender Marital Status Income Education Occupation North.Post graduate Professional. Live-ins. Married.000. Central India. White Collar. Hot. Higher Secondary. 50. etc Rajeev Chawla 40 .000 – 50. Rainy. Blue Collar. etc Male. North Eastern States Metros.00.000. 18 – 25. rural Temperature. PSU.000 – 1. Armed Forces. 18. Humid Under 12. Civil Services. Mini metros. Semi-urban. 18. Rs.000. B & C Urban. etc High School.

North Easterners Christians: Catholics. negative attitude Status seekers. Safety. conformists. economy minded Northerners. Jews. novelty seekers Low risk. South Indians. Asians. Afro Americans. Protestants. East Indians. Dalits. Affection. Caucasians. Hispanics.Segmenting Consumer Markets SEGMENTATATION /SEGMENTATATION VARIABLES BASES PSYCHOLOGICAL Needs motivation Personality Perception Learning Attitudes PSYCHOGRAPHIC Lifestyle SOCIOCULTURAL Cultures Religion Sub-cultures Shelter. aggressives. Security. Anglo Saxons Rajeev Chawla 41 . Muslims North Easterners. Sense of Self Worth Extrovert. OBC‟s. couch potatoes. Moderate risk. Hindus. high involvement Positive attitude. high risk Low involvement.

boss. Gift. Chinese company Rajeev Chawla 42 .Segmenting Consumer Markets SEGMENTATATION /SEGMENTATATION VARIABLES BASES USE RELATED SEGMENTS Usage Rate Heavy Users. economy. Work place. Light Users. enthusiastics Brand Loyalty None. convenience HYBRID SEGMENT Demographic + Psychographic Geo-demographic Black Enterprise. Leisure. lasting. Some. Friends Home Self. Moderate Users. Snack. Night. interested. family members. value for money. Strong USE SITUATION Time Objective Location Person Benefit Morning. Work Personal. aware. Non Users Awareness Status Unaware. peers Social acceptance. In store. Fun. Achievement Home.

market segments must rate favorably on 5 key criteria: Measurable The size. it has to decide how many and which ones to target To be useful. purchasing power and characteristics of the segments can be measured Substantial The segment should be large and profitable enough to serve Accessible The segments can be effectively reached and served Differentiable The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs Actionable Effective programs can be formulated for attracting and serving the segments Rajeev Chawla 43 .Market Segmentation Criteria One the firm has identified its market-segment opportunities.


SOCIAL CLASS Is a doctor more valued than a truck driver or a farm worker in our society? This is the indication of the reality of the existence of a social class Definition: SOCIAL CLASS is defined as the division of members of a society into a hierarchy of distinct status classes. so that members of each class have relatively the same status and members of all other classes have either more or less status Status is frequently thought of as the relative rankings of members of each social class in terms of specific status factors: Relative wealth: Amount of economic assets Power: The degree of influence over others And Prestige: The degree of recognition received from others All 3 status factors are frequently used when estimating social class Rajeev Chawla 45 .

occupational status educational attainment SOCIAL CLASS AND SEGMENTATION: Social class categories are usually ranked in a hierarchy. Consumers may purchase certain products because these products are favored by members of either their own or a higher social class. Social class categories suggest to many people that others are equal to them. and consumers may avoid other products because they perceive the products to be “lower-class” products Rajeev Chawla 46 . superior to them or equal to them Within this context.SOCIAL CLASS Individuals with more purchasing power or a greater ability to make purchases have more status More convenient variables for status are demographic variables: family income. social-class membership serves consumers as a frame of reference for the development of their attitudes and behavior The hierarchical aspect of social class is important to marketers. ranging from low to high status.

white collar Rajeev Chawla 47 . grey collar.SOCIAL CLASS SOCIAL CLASS CATEGORIES: • • • • • • Upper-upper class Lower-Upper class Upper-middle class Lower-middle class Upper-lower class Lower-lower class OR • Blue collar.

SOCIAL CLASS MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: • Subjective measures • Reputational measures and • Objective measures Subjective measures: Individuals are asked to estimate their own social-class positions. Typical of this approach is the following question: Which of the following categories best describes your social class? • The Lower class ( ) • The Lower-middle class ( ) • The Upper-middle class ( ) • The Upper class ( ) • Do not know/refuse to answer ( ) Rajeev Chawla 48 .

SOCIAL CLASS MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: • Subjective measures • Reputational measures and • Objective measures Reputational measures: The reputational approach for measuring social class requires selected community informants to make judgments concerning the social-class membership of others within the community The final task of assigning community members to socialclass positions. however. belongs to the trained researcher Rajeev Chawla 49 .

and residence neighborhood information Rajeev Chawla 50 . they add geodemographic in the form of zip code. their families. These variables are measured through questionnaires that ask the respondents several factual questions about themselves. or their places of residence.SOCIAL CLASS MEASUREMENT OF SOCIAL CLASS CATEGORIES: Systematic approaches for measuring social class fall into the following broad categories: • Subjective measures • Reputational measures and • Objective measures Objective measures: These consist of selected demographic or socioeconomic variables concerning the individual under study. Most researchers favor one or more of the following variables: Occupation. amount of income and education To the above socioeconomic factors.

The VALS Framework Actualizers High Resources High Innovation Principle oriented Status oriented Action oriented Fulfilleds Achievers Experiencers Believers Strivers Makers Strugglers Rajeev Chawla Low Resources Low Innovation 51 .

The VALS Framework Innovators High Resources High Innovation Principle oriented Status oriented Action oriented Thinkers Achievers Experimenters Believers Strivers Makers Survivors Rajeev Chawla Low Resources Low Innovation 52 .

impulsive people who seek variety and excitement. often reflect cultivated tastes for relatively upscale. and socializing Rajeev Chawla 53 .The VALS Framework Psychographic Segmentation: The major tendencies of the four groups with higher resources are: Innovators: Successful. entertainment. and responsibility. Favor durability. take-charge people with high self-esteem. sophisticates. Spend a comparatively high proportion of income on fashion. knowledge. and value in products Achievers: Successful goal-oriented people who focus on career and family. active. satisfied. niche-oriented products and services Thinkers: Mature. and reflective people who are motivated by ideals and value order. functionality. They favor premium products that demonstrate success to their peers Experimenters: Young. enthusiastic. Purchases.

The VALS Framework
Psychographic Segmentation: The major tendencies of the four groups with lower resources are: Believers: Conservative, conventional, and traditional people with concrete beliefs. They favor familiar products, and are loyal to the established brands Strivers: Trendy and fun loving who are resource constrained. They favor stylish products that emulate the purchases of those with greater material wealth Makers: Practical, down to earth, self-sufficient people who like to work with their hands. They favor products with a practical or functional purpose Survivors: Elderly, passive people who are concerned about change. They are loyal to their favorite brands
Rajeev Chawla 54

U r a Mouse Potato or a Techno-Striver..?
Fast forwards (biggest spenders, early adopters of new technology for all use) Techno-Strivers (use technology from cell phones and pagers to online services primarily) Hand-Shakers (older consumer, do not touch computers, leave them to assistants)

New Age Nurtures (big spender, focused on technology for home use) Digital Hopefuls (limited budget but still interested in new tech)

Mouse Potatoes (willing to spend for the latest in technotainment) Gadget-Grabbers (favor online entertainment but have less cash to spend)



Traditionalists (willing to use tech but slow to upgrade)

Media Junkies (seek entertainment, cannot find online, prefer TV and other older media)

SIDELINED CITIZENS (not interested in technology)




Rajeev Chawla


PERCEPTION PERCEPTION: Perception is defined as the process by which an individual selects. organizes and interprets stimuli into a meaningful picture of the world PERCEPTION IS OUR MAP OF REALITY IF WE WISH TO CHANGE PERCEPTION WE WILL HAVE TO CHANGE ONE‟S REALITY Rajeev Chawla 57 .

cont IMPLICATIONS: GENERIC: • Positioning • Addressing Segments • Brand personality • Communication message • Marketing Mix SPECIFIC: • Packaging • Shelf merchandising • Color • Culture/Communities etc • Product details • Push • Promotions Rajeev Chawla 58 .PERCEPTION .

even in the absence of the Stimulus a subject will elicit a response merely on the basis of the association of the object EXAMPLES: • • • • • Aroma in restaurants / Strong Visuals of Food Silence in a Board Room or at a funeral A judge entering his chambers – silence and order follows Background music in movies Firecrackers signify celebration Rajeev Chawla 59 .CONCEPTS CONDITIONING: THE PAVLOVIAN DOG – CLASSICAL CONDITIONING Stimulus + Association through an object = Response After repeated learning.

F.CONCEPTS CONDITIONING: REWARD AND PUNISHMENT OPERANT CONDITIONING B. SKINNER The Human Desire for Strokes – positive and negative Reward and punishment Praise and Admonish EXAMPLES: • Loyalty based promotions : Flying Returns. FCC • Scratch Cards with Gifts/Prizes • All the Current Car Finance Schemes Rajeev Chawla 60 .

CONCEPTS WHATS THE MODUS OPERANDI: How do you use Conditioning? What‟s the channel? THE 5 SENSES!!! SENSATION – The immediate and direct response of the sensory organs to simple stimuli The Human organs are the sensory receptors that marketers work on Which is the strongest sense??? Rajeev Chawla 61 .

CONCEPTS .cont THRESHOLD: Absolute threshold: The lowest level at which an individual can experience a sensation The point at which a person can detect a difference between something and nothing is that persons absolute threshold for that stimulus. Adaptation is the variation that marketers are concerned about. this is technically called SENSORY ADAPTATION EXAMPLES: • Billboards distance • Fonts on Billboards • Advertisements – positions in the newspapers Rajeev Chawla 62 .

Rajeev Chawla 63 . – Just noticeable difference Credits : Ernst Weber! and called Weber‟s Law Weber's Law: The JND between 2 stimuli is not an absolute amount but an amount relative to the intensity of the first stimulus.CONCEPTS .cont THRESHOLD: Differential threshold: The minimal differential that can be detected between two similar stimuli is called the differential threshold or also called the J.D.N.

Marketing Applications/Implications of JND: 1) Negative changes are not readily discernable to the public and 2) Product improvements are very apparent to consumers without being wastefully extravagant EXAMPLES: • NEW COKE • PACKAGING CHANGES • PEPSI – packaging 1997. COKE – freshness in color Rajeev Chawla 64 . the greater the additional intensity needed for the stimulus to be perceived as different.CONCEPTS .cont Corollary to Weber‟s Law: The stronger the initial stimulus.

but strong enough to be perceived by one or more of our receptor cells The stimulus is beneath the threshold. hence sublimal THE CONCEPT OF SUPERLEARNING EXAMPLES: • Super soft sublimal music with suggestions being put forth through audio messages can actually induce positive buying behavior • Sublimal visual messages with written suggestions induces purchase Rajeev Chawla 65 .PERCEPTION – Is it a big deal!!! Or Is it much Ado About Nothing? SUBLIMAL PERCEPTION: Stimulation below the levels of consciousness.

cont USAGE OF THE SUBLIMAL CONCEPT IN-STORE Store audio + Music Restaurants + Music PERCEIVED PRICING IN PROMOTIONS Perceived Price and the Cost Price : Effect on Psyche Rajeev Chawla 66 .PERCEPTION .


12.LEARNING & PERCEPTION EXERCISE a. What Stimuli would you build in line with Classical & Operant Conditioning for: b. 10. 5. 6. 7. 11. 8. A Car Dealership Showroom A Casino A Café A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant Rajeev Chawla 68 . 3. 2. 9. What would you keep in mind to ensure the right Perception as well as the 2 Perception Laws for the future 1. 4.



10. What would you keep in mind to ensure the right Perception as well as the 2 Perception Laws for the future 1. 3.LEARNING & PERCEPTION EXERCISE a. 8. 9. 4. 2. 7. 6. 5. What Stimuli would you build in line with Classical & Operant Conditioning for: b. 11. A Discotheque A Fast Food restaurant An International Airport An Educational Institute A Music Store A Shopping Mall A Book store A Multiplex A Chinese Restaurant A Car Dealership Showroom A Casino Rajeev Chawla 71 .

Culture & Sub-Culture Rajeev Chawla 72 .

technology. values and customs that serve to direct the consumer behavior of members of a particular society Rajeev Chawla 73 . art. products and others comprise a Society‟s culture Hence CULTURE is a Society‟s personality Culture does not have boundaries Definition of CULTURE CULTURE is the sum total of learned beliefs. religion. music. knowledge.CULTURE CULTURE is a Society‟s personality The factors such as language. food customs. laws. work patterns. practices.

VALUES & BELIEFS BELIEFS: Beliefs consist of a large number of mental or verbal statements (as in ….I believe) which reflect a persons particular knowledge and assessment of something VALUES: Values differ by meeting the following criteria: 1) They are relatively few in number 2) They serve as a guide for culturally appropriate behavior 3) They are enduring or difficult to change 4) They are tied to specific objects or situations and 5) They are widely accepted by members of society Rajeev Chawla 74 ..

CUSTOMS CUSTOMS: Customs are overt modes of behavior that constitute culturally approved or acceptable ways of behaving in specific situations. Thus: But: VALUES and BELIEFS are guides for behavior CUSTOMS are usual and acceptable ways of behaving Values & Beliefs of Corporations (Examples): • • • • WIPRO IBM APPLE The new breed of FUN Corporations: Healthscribe Rajeev Chawla 75 .

CULTURE How CULTURE forms our Daily Habits: • • • • • • Eating Habits Personal Hygiene Food and Drink for Occasions Holidays Work Culture Dress Codes (Informal) Rajeev Chawla 76 .

LEARNING CULTURE LEARNING CULTURE a) Formal Learning b) Informal Learning c) Technical Learning Advertising uses Informal Learning largely It tends to create reinforcement of message to ingrain culture Rajeev Chawla 77 .

Products • • • • Kellogs Breakfast Cereal Ready to eat Masala Foods Eating out The concept of Freshly prepared meals (India) Rajeev Chawla 78 .CHALLENGES CHALLENGES OF CULTURE .CULTURE .

CULTURE .LEARNING CULTURE – WHERE DO WE LEARN FROM • • • • • • The Family Educational Institutions Houses of Worship Social Institutions The Work Place Peer Groups Rajeev Chawla 79 .

CHANGING CULTURE Examples: • • • • Diapers Cosmetics: Natural Products Paper & Industry: Environmentally friendly products Hotels: Eco friendly Hotels THE DYNAMISM OF CULTURE: • • • • • The Working woman One child families Families in decision making Children in decision making The single parent Rajeev Chawla 80 .

CULTURE ENCULTURATION: The learning of one‟s own culture ACCULTURATION: The learning of a new or foreign culture Examples: • McDonalds • The Pepsi Arabic example LANGUAGE & SYMBOLS: The use in Advertising and Communication • Logos • Brand Names • Visual symbols Rajeev Chawla 81 .

Rituals RITUALS: A type of symbolic activity consisting of a series of steps (multiple behaviors) occurring in a fixed sequence and repeated over time Rituals are very public.CULTURE . religious or civil ceremonies. elaborate. formal. other scripted behavior and repeatable Rituals tend to need ritual artifacts (products) that are associated with or somehow enhance the performance of the ritual Rajeev Chawla 82 .

CULTURE CORE VALUES: Values that affect and reflect the character of a Society. enduring and must be consumer-related Rajeev Chawla 83 . Core values must be pervasive.

CULTURE – Core Values CORE VALUES: American Core Values • • • • • • • • • • Achievement and Success Activity Orientation Efficiency and Practicality Progress Material Comfort Individualism External Conformity Humanitariasm Youthfulness Fitness and Health Rajeev Chawla 84 .

CULTURE WHAT ARE CORE INDIAN VALUES: • • • • • Indoctrination towards elders The Family Value (Joint family perhaps) Permanency to marriage Religion ………… Rajeev Chawla 85 .

SUB-CULTURE SUBCULTURE: Distinct groups easily identifiable as a segment within a larger more complex society are called subcultures The divisions are based on a variety of socio-cultural and demographic variables such as nationality. religion. sex and even working status Rajeev Chawla 86 . age. race. geographic locality.

Behavior and Opportunities or relevance to Consumer Behavior Rajeev Chawla 87 .SUB-CULTURE MARKETING IN SUBCULTURES: • Understanding subculture and behavior exhibited by that culture • Segmenting the subculture • Defining values.

SUB-CULTURE SUBCULTURE PARAMETERS: • • • • • • Origins or Nationality Religion Geography & Regions Races Age Sex (Gender) Rajeev Chawla 88 .

SUB-CULTURE CONSUMER BEHAVIOR: AN INTERNATIONAL PERSPECTIVE: • • • • • Acculturation Exposure to Other Cultures Country of Origin Effect Multinationalism Global V/s Local Rajeev Chawla 89 .


ATTITUDE FORMATION ATTITUDES are our opinions or feelings towards an object. advertisement etc This is consumption oriented definition of attitude Rajeev Chawla 91 . product category. service. brand. product or situation ATTITUDES are evidenced or inferred from our behavior Definition: ATTITUDE is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object Object = Product.

ATTITUDE FORMATION ATTITUDES: Attitudes are Learned Attitudes have consistency Attitudes occur within a situation ATTITUDE STUDIES are therefore the study of the relationship between Attitude and Behavior Rajeev Chawla 92 .


ATTITUDE FORMATION ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: a) A Cognitive component: Knowledge and perception Based on our beliefs b) An Affective component: Emotions of a product with amplification c) A Conative Component: The likelihood or tendency to act in a particular way The intention to buy Rajeev Chawla 94 .

ATTITUDE FORMATION ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: Conation Affect Cognition Rajeev Chawla 95 .

that is.ATTITUDE FORMATION ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Cognitive component: This consists of a person‟s cognitions. the knowledge and perceptions that are acquired by a combination of direct experience with the attitude object and related information from various sources The knowledge and resulting perception commonly take the form of beliefs that the attitude object possesses various attributes and that specific behavior will lead to specific outcomes Rajeev Chawla 96 .

anger. shame. happiness. or surprise Research indicates that such emotional states may enhance or amplify positive or negative experiences and that later recollections of such experiences may impact what comes to mind and how the individual acts Rajeev Chawla 97 . guilt. disgust. distress.ATTITUDE FORMATION ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Affective component: The consumer‟s emotions or feelings about a particular product or brand constitute the affective component of an attitude Affect-laden experiences also manifest themselves as emotionally charged states.. sadness. eg.

ATTITUDE FORMATION ATTITUDE STUDIES: I)TRICOMPONENT ATTITUDE MODEL: Attitude consists of 3 components: The Conative Component: Conation. the conative component is frequently treated as an expression of the consumer‟s intention to buy Rajeev Chawla 98 . is concerned with the likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object According to some interpretation.

ATTITUDE FORMATION ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: Consumer attitudes are a function of a consumers perception and assessment of the key attributes or beliefs held with regard to the particular attitude object The Attitude towards Object Model The Attitude towards Behavior Model The Theory of Reasoned action Model Rajeev Chawla 99 .

The consumers attitude towards a product or service of a specific brand is a function of the presence or absence and evaluation of certain product-specific beliefs and/or attributes Hence if the consumer evaluates an adequate level of attributes as positive. then they have a favorable attitude towards those brands If the attributes are felt inadequate then the attitude towards the brand is unfavorable Rajeev Chawla 100 .ATTITUDE FORMATION ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Attitude towards Object Model This is suitable for measuring attitudes towards a product category or specific brands.

ATTITUDE FORMATION ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Attitude towards Behavior Model The attitude-towards-behavior model is the individuals attitude towards behaving or acting with respect to an object rather than the attitude itself The appeal of the attitude-towards-behavior model is that it seems to correspond somewhat more closely to actual behavior than does the attitude-towardsobject model Rajeev Chawla 101 .

ATTITUDE FORMATION ATTITUDE STUDIES: II) MULTIATTRIBUTE ATTITUDE MODEL: The Theory of Reasoned action Model The theory of reasoned action represents a comprehensive integration of attitude components into a structure that is designed to lead to both better explanation and better predictions of behavior Like the tri-component model it also incorporates a cognitive component. an affective component and a conative component. however these are arranged in a pattern different from that of the tri-component model Rajeev Chawla 102 .

ATTITUDE FORMATION II) MULTIATTRIBUTE ATTITUDE MODEL: The Theory of Reasoned action Model A SIMPLIFIED VERSION OF THE THEORY OF REASONED ACTION Benefits that the behavior leads to certain outcomes Attitude toward the behavior Evaluation of the outcomes Intention Beliefs that specific Referents think I should or should not perform the behavior Motivation to comply with the specific referents Behavior Subjective norm Rajeev Chawla 103 .


Where the action or the outcome is not certain, but instead reflects the consumers attempt to consume (or purchase) In such cases there are personal impediments and/or environmental impediments that might prevent the desired action or outcome from occurring

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ATTITUDE STUDIES: IV) ATTITUDE TOWARDS THE AD MODEL: 1) The consumer forms various feelings and judgments as a result of exposure to an ad. 2) This in turn affects the consumers attitude towards the ad and beliefs about the brand acquired from exposure to the ad 3) Finally the consumers attitude towards the ad and beliefs about the brand influence his attitude towards the brand

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1) How are attitudes learned 2) The sources of influence on attitude formation 3) The impact of personality on attitude formation How are attitudes learned: • Theories of learning • Classical Conditioning • Operant conditioning • Belief formation • Motivation

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ATTITUDE FORMATION 1) 2) 3) How are attitudes learned The sources of influence on attitude formation The impact of personality on attitude formation The sources of influence on attitude formation : • Personal influence • Family and friends influence • Direct Marketing • Mass Media Rajeev Chawla 107 .

ATTITUDE FORMATION 1) How are attitudes learned 2) The sources of influence on attitude formation 3) The impact of personality on attitude formation The impact of personality on attitude formation : • High need for Information • Early innovators + reinforcement Rajeev Chawla 108 .

ATTITUDE CHANGE ATTITUDE FORMATION and ATTITUDE CHANGE are both learned behavior ATTITUDE CHANGE STRATEGIES are: • • • • • Changing the Consumers basic motivational function Associating the product with an admired group or event Resolving two conflicting attitudes Altering components of the multi attribute model and Changing consumer beliefs about competitor brands COGNITIVE DISSONANCE Rajeev Chawla 109 .

Personality and Consumer Behavior Rajeev Chawla 110 .

Personality Personality As Marketers we appeal to Consumers in terms of their personality characteristics. is likely to be influenced by personality factors Hence appeals like: Individuality Tata Safari Make Your Own Road Being challeged Hyatt Resorts What time would you like to lose your dignity Freedom (Finding yourself) Provogue Be the Attitude. Be the Change Making a Statement SX4 The Men are Back Rajeev Chawla 111 . and when and how they consume. This is based on the premise that What Consumers purchase.

mission oriented. their consumption behavior often varies considerably because of the various psychological. such as birth of a child. personalities change. socio-cultural. gregarious. Personality may be altered by major life events. significant career promotions Rajeev Chawla 112 . They could be adventurous. sad. death of a loved one.Personality Personality Definition: The inner psychological characteristics that both determine and reflect how a person responds to his or her environment The Nature of Personality: 3 distinct properties of personality are of central importance: • Personality reflects individual differences People as individuals are different. lively. a divorce. environmental. etc • Personality is consistent and enduring Even though consumer‟s personalities may be consistent. and situational factors that affect behavior However an individuals personality is consistent given these differences • Personality can change Under certain circumstances. serious by nature.

Personality Personality: An Overview of the Theories of Personality Freudian theory: Unconscious needs or drives are at the heart of human motivation Neo-Freudian personality theory : Social relationships are fundamental to the formation and development of personality Trait theory : Quantitative approach to personality as a set of psychological traits Rajeev Chawla 113 .

analysis of their dreams.Personality Personality: The Theories of Personality Freudian theory: Sigmund Freud‟s psychoanalytic theory of personality is a cornerstone of modern psychology The premise of the theory is that: Unconscious needs or drives. and their specific nature of their mental and physical adjustment problems Freud proposed that the human personality consists of three interacting systems: the Id. especially sexual or other biological drives are at the heart of human motivation and personality Freud constructed his theory on the basis of patient‟s recollections of early childhood experiences. the Superego. and the Ego Rajeev Chawla 114 .

the Superego. It functions as an internal monitor that attempts to balance the impulsive demands of the Id and the socio-cultural constraints of the superego Rajeev Chawla 115 . hunger.Personality Personality: The Theories of Personality Freudian theory: Freud proposed that the human personality consists of three interacting systems: the Id. and the Ego Id: The Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction – basic physiological drives and needs such as thirst. and sex – for which individuals seek immediate satisfaction without concern for the specific means of satisfaction Superego: The Individual‟s internal expression of society‟s moral and ethical codes of conduct The Superego‟s role is to see that the individual satisfies needs in a socially acceptable fashion. It acts like a „brake‟ that restrains or inhibits the impulsive forces of the Id Ego: The Individual‟s conscious control that balances the demands of the id and superego.

latent. anal. and genital stages According to Freudian theory. if a child‟s oral needs are not adequately satisfied at the first stage of development the person may become fixated at this stage and as an adult display a personality that includes such traits as dependence and excessive oral activity like gum chewing and smoking When an individual is fixated at the anal stage. phallic. and childhood development These are the oral. the adult personality may display traits such as an excessive need for neatness Rajeev Chawla 116 .Personality Personality: The Theories of Personality Freudian theory: Freud emphasized that an individual‟s personality is formed as he or she passes through a number of stages of infant. an adult‟s personality is determined by how well he or she deals with the crises that are experienced while passing through each of these stages For instance.

and the Ego Rajeev Chawla 117 . The Superego.Personality Personality: A Representation of the Interrelationships among the Id.

generous. impatient Tortilla Chips: Perfectionist. trustworthy. intuitive Snack Crackers: Rational. punctual. pitches in often. high achiever. logical. self-confident but not a show-off Meat Snacks: Gregarious. successful. flirtatious. contemplative. easily bored. high expectations. conservational Pretzels: Lively.Personality Personality: Freudian Theory and Product Personality” Consumer researchers using Freud‟s personality theory see consumer purchases as a reflection and extension of the consumer‟s own personality With Respect to Snack Food and Personality Traits as an Example: Potato Chips: Ambitious. prefers time alone Popcorn: Takes charge. tends to be overly trusting Rajeev Chawla 118 . modest. shy.

they desire to be loved. and Detached • Compliant individuals move toward others. stressed that people continuously attempt to establish significant and rewarding relationships with others Karen Horney was interested in child-parent relationships and desires to conquer feelings of anxiety. which he called style of life. Aggressive. He also placed much emphasis on the individual's efforts to overcome feelings of inferiority Harry Stock Sullivan. She proposed that individuals can be classified into three personality groups: Compliant. another Neo-Freudian.Personality Personality: The Theories of Personality Neo-Freudian theories: We seek goals to overcome feelings of inferiority We continually attempt to establish social relationships with others to reduce tensions Alfred Alder viewed human beings as seeking to attain various rational goals. wanted. and appreciated • Aggressive those individuals who move against others • Detached move away from others Rajeev Chawla 119 .

not a specific brand Personality tests measure such traits as: • Consumer Innovativeness – how receptive a person is to new experiences • Consumer Materialism – the degree of the consumer‟s attachment to „worldly possessions‟ and • Consumer Ethnocentricity – the consumer‟s likelihood to accept or reject foreign-made products Rajeev Chawla 120 . relatively enduring way in which one individual differs from another Trait theorists are concerned with the construction of personality tests that enable them to pinpoint individual differences in terms of specific traits Personality is linked to how consumers make their choices or to consumption of a broad product category .Personality Personality: The Theories of Personality The Trait Theory: Personality theory with a focus on psychological characteristics Trait .any distinguishing.

or new practices 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 Social character Ranges on a continuum for inner-directedness to otherdirectedness Rajeev Chawla 121 . Consumer Innovativeness and Related Personality Traits Innovativeness The degree to which consumers are receptive to new products. new services.Personality Personality: The Theories of Personality The Trait Theory: 1.

Consumer Innovativeness and Related Personality Traits Inner-directedness • Rely on own values when evaluating products • Innovators Other-directedness • look to others • less likely to be innovators Need for uniqueness Consumers who avoid appearing to conform to expectations or standards of others Optimum stimulation level (OSL) A personality trait that measures the level or amount of novelty or complexity that individuals seek in their personal experiences High OSL consumers tend to accept risky and novel products more readily than low OSL consumers Rajeev Chawla 122 .Personality Personality: The Theories of Personality The Trait Theory: 1.

which has been defined as “a trait characterized by the need for varied.Personality Personality: The Theories of Personality The Trait Theory: 1. novel. and the willingness to take physical and social risks for the sake of experience” Variety-novelty seeking Measures a consumer‟s degree of variety seeking Examples include: • Exploratory Purchase Behavior • Use Innovativeness • Vicarious Exploration Rajeev Chawla 123 . and complex sensations and experience. Consumer Innovativeness and Related Personality Traits Sensation seeking Closely related to the OSL concept is sensation seeking.

Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Consumer materialism Materialism. distinguishes between individuals who regard possessions as essential to their identities and their lives and those for whom possessions are secondary Researchers have found some general support for the following characteristics of materialistic people: • They especially value acquiring and showing off possessions • They are particularly self-centered and selfish • They seek lifestyles full of possessions • Their many possessions do not give them great satisfaction Rajeev Chawla 124 .Personality Personality: The Theories of Personality The Trait Theory: 2. as a personality trait.

they frequently display them. fixated consumption behavior is in the realm of normal and socially acceptable behavior Fixated consumers so not keep their objects or purchases of interest a secret. and their involvement is openly shared with others who have a similar interest Fixated consumers typically possess the following characteristics: • A deep interest in a particular object or product category • A Willingness to go to considerable lengths to secure additional examples of the object or product category of interest and • The dedication of a considerable amount of discretionary time and money to searching out the object or product Rajeev Chawla 125 . is the notion of being fixated with regard to consuming or possessing Like materialism. Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Fixated Consumer Behavior Somewhere between materialism and compulsion.Personality Personality: The Theories of Personality The Trait Theory: 2. with respect to buying or possessing objects. rather.

there are many women and a small number of men who are chocoholics . and their actions may have damaging consequences to them and those around them Examples of compulsive consumption problems are uncontrollable shopping. and various food and eating disorders For instance. gambling.they have an intense craving for chocolate To control or possibly eliminate such compulsive problems generally requires some type of therapy or clinical treatment Rajeev Chawla 126 .Personality Personality: The Theories of Personality The Trait Theory: 2. Consumer Materialism to Compulsive Consumption These are traits that range from consumer materialism to fixated behavior to consumer compulsive behavior Compulsive Consumption Behavior Compulsive Consumption is in the realm of abnormal behavior – it is an example of the dark side of consumption Consumers who are compulsive have an addiction. in some respects they are out of control. drug addiction. alcoholism.

have been found to be more ethnocentric than their French and American counterparts – Some older American consumers still refuse to purchase German and/or Japanese products Rajeev Chawla 127 . Consumer Ethnocentrism. whereas non-ethnocentric consumers tend to evaluate foreign-made products – ostensibly more objectively – for their extrinsic characteristics Ethnocentrism has been found to vary by country and product For example: – Mexican consumers. that are likely to be receptive to foreign-made products and those that are not.Responses to Foreign-Made Products To distinguish between consumer segments.Personality Personality: The Theories of Personality The Trait Theory: 3. researchers have developed ad tested the consumer ethnocentrism scale. for example. called CETSCALE The CETSCALE has been successful in identifying consumers with a predisposition to accept (or reject) foreign-made products Consumers who are highly ethnocentric are likely to feel that it is appropriate or wrong to purchase foreign-made products because of the resulting economic impact on the domestic economy.

should be imported 3. American people should always buy American-made products instead of imports 2.Responses to Foreign-Made Products The CETSCALE Items 1.S. It is always best to purchase American products Rajeev Chawla 128 . Only those products that are unavailable in the U. 7. Keep America working. A real American should always buy American-made products. because it puts Americans out of jobs 6. It is not right to purchase foreign products. Purchasing foreign-made products is un-American 5. We should purchase products manufactured in America instead of letting other countries get rich off us 8. Buy American-made products.Personality Personality: The Theories of Personality The Trait Theory: 3. Consumer Ethnocentrism. 4.

Responses to Foreign-Made Products This ad is designed to appeal to consumer ethnocentrism. Rajeev Chawla 129 . Consumer Ethnocentrism.Personality Personality: The Theories of Personality The Trait Theory: 3.

it will strengthen the brand Rajeev Chawla 130 . or symbolic As long as it is strong and favorable.Brand Personality Brand Personality Consumers attribute various descriptive personality traits or characteristics to different brands in a wide variety of product categories For example. consumers see Brands as having the following charactristics: Volvo Nike BMW Levi‟s 501 is Safe represents the athlete in us is a Performance driven machine is dependable and rugged Such personality-like images of brands reflect consumers‟ visions of the inner core of many strong brands of consumer products A Brand‟s personality can be either functional.

A Brand Personality Framework Rajeev Chawla 131 .

Brand Personality Brand Personification Product Personality and Gender Product Personality and Geography Rajeev Chawla 132 .

Brand Personality Product Personality and Geography Personality and Color Rajeev Chawla 133 .

The Howard Sheth Model (John Howard & Jagdish Sheth) Rajeev Chawla 134 .

whereas the environmental stimulus are given by social factors. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). However. rational decision process. where the focus is not set on the processes inside a consumer. decision process and consumer responses. consumer characteristics. The marketing stimuli are planned and processed by the companies. but the relation between the stimuli and the response of the consumer.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model The Howard Sheth model shows the interaction of stimuli. which determines the buyers response The black box model considers the buyers response as a result of a conscious. The buyers black box contains the buyer characteristics and the decision process. in which it is assumed that the buyer has recognized the problem. in reality many decisions are not made in awareness of a determined problem by the consumer Rajeev Chawla 135 . The Howard Sheth model is related to the black box theory of behaviorism. based on the economical. political and cultural circumstances of a society.

organises. selects. Perception is defined as 'the process by which an individual receives. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search Sources of information include: • Personal sources • Commercial sources • Public sources • Personal experience The relevant internal psychological process that is associated with information search is perception.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Once the consumer has recognised a problem. they search for information on products and services that can solve that problem. and interprets information to create a meaningful picture of the world' Rajeev Chawla 136 .

motives and experiences • Selective retention consumers remember messages that are more meaningful or important to them The implications of this process help develop an effective promotional strategy. attitudes.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: The selective perception process Stage Description • Selective exposure consumers select which promotional messages they will expose themselves to • Selective attention consumers select which promotional messages they will pay attention to • Selective comprehension consumer interpret messages in line with their beliefs. and select which sources of information are more effective for the brand Rajeev Chawla 137 .

The provision of credit or payment terms may encourage purchase. The relevant internal psychological process that is associated with purchase decision is integration Rajeev Chawla 138 . or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Purchase decision Once the alternatives have been evaluated. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. the consumer is ready to make a purchase decision.

The customer. it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. having bought a product.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. but is likely to switch brands next time To manage the post-purchase stage. the customer should be encouraged that he or she has made the right decision Rajeev Chawla 139 . may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately. Then after having made a purchase.

sub-culture. beliefs. Behaviour of every individual depends on his thinking process External influences l Consumer behaviour is influenced by: culture. Consumer behaviour concern with consumer needs. and feelings. lifestyle. social class. royalty. family. ethnicity. locality. and market mix factors Rajeev Chawla 140 . motivation.The Howard Sheth Model The Howard Sheth Model OR The Black Box Model INFORMATION SEARCH: Internal influences Consumer behaviour is influenced by: demographics. psychographics (lifestyle). personality. attitudes. reference groups. knowledge. and consumer actions in the direction of satisfing needs leads to his behaviour.

The Decision Making Process Need Recognition Information Search Evaluation R E S P O N S E M A R K E T I N G S T I M U L I P R O C E S S R O L E S D E C I S I O N S E T Environment Stimuli Personal Characteristics Purchase Outcome Satisfaction Dissatisfaction Action Rajeev Chawla 141 .

Rajeev Chawla 142 .

Kollat Model (The EBK Model) Rajeev Chawla 143 . Blackwell.The Engel.

Kollat Model) Need Recognition I N T E R N A L S E A R C H Search Environment Influences -culture Social class Family Situation -personal influences Stimuli -Marketer dominated -.Decision Making Process .EBK Model ( Engel.nonmarketer -dominated Exposure Attention M E M O R Y Evaluation Purchase Consumption Postconsumption Comprehension Acceptance Retention Evaluation Dissatisfaction Rajeev Chawla Individual Differences -Motivation -Knowledge -Attitude -Personality Satisfaction 144 External search . Blackwell.

Blackwell. Kollat.Decision Making Process -EKB Model ( Engel. Model Rajeev Chawla 145 .

Question Bank - Assignment
1. Explain the Decision Making Model. Detail decision making for your Client when he contracts business with your firm 2. Detail one Motivational Theory (Maslow, Herzberg or Theory Z) and give live examples of how your firm could impact employees lives through this theory 3. Describe Classical Conditioning and what are the right stimuli you could build for your Clients 4. If the Reward-Punishment theory works then detail it w.r.t the right rewards you could build for your Clients 5. Explain Culture, Sub culture, Beliefs, Values and Customs with examples specific to your work place: Clients, employers, etc 6. How does Enculturation and Acculturation work if you want to set up your firms‟ business in India and in U.A.E. 7. Describe any one theory in detail of how Attitudes are formed with examples 8. If we were to attempt to change the Attitude Indian consumers have towards Fast Food then how would you go about it 9. If you are trying to promote a new concept with your clients how would you attempt to move them into positive acceptance. Make assumptions
Rajeev Chawla 146


Consumer Behavior: 9th Edition Leon Schiffman and Leslie Kanuk Consumer Behavior: 5th / 6th Edition Michael Solomon

Rajeev Chawla


Rajeev Chawla
•Consultant-Marketing and General Management •Corporate trainer •Educationist

Cell: 93205-20203

Rajeev Chawla


Maharashtra Dairy Products from Amrit Food. Punjab and Mrs. Ghaziabad. Taloja. Maharashtra Buns from Cremica. Pies and Pizza McPuff™ from Vista Processed Foods. Thane Chicken Patties. Bector and Sons. Nainital and Ooty Cheese form Dynamix Dairies. Phillaur. Khopoli. Maharashtra Sauce from Bector Foods. UP Distribution center at Radhakrishna Foodland Rajeev Chawla 149 . Delhi. Baramati.Brand Building . Punjab and Hindustan Lever Limited-Best Foods Division. Phillaur. Vegetable Patties.Sourcing • • • • • • • Fresh Lettuce comes from Pune.

com 8805653470 Mrkt 1 9921823169 Rajeev Chawla 150 .• • • • • • Mrkt 2 gauravdadhich90@gmail.

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