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CONSUMER BEHAVIOUR

 CB WAS A RELATIVELY A NEW FIELD OF
STUDY IN THE MID TO LATE 1960’s.
 CB HAS NO HISTORY OR BODY OF
RESEARCH OF ITS OWN….
 MKTNG THEORISTS BORROWED
CONCEPTS FROM
PSYCHOLOGY,SOCIOLOGY,ANTHROPOLO
GY.
CONSUMER BEHAVIOUR

 RESEARCH DISCOVERED THAT
CONSUMERS ARE JUST AS LIKELY
TO PURCHASE IMPULSIVELY & TO
BE INFLUENCED NOT ONLY BY
FAMILY & FRIENDS,BY
ADVERTISERS & ROLE MODELS,BUT
ALSO BY MOOD,SITUATION &
EMOTION.
CONSUMER BEHAVIOUR

 ALL OF THESE FACTORS COMBINE
TO FORM A COMPREHENSIVE
MODEL OF ‘CB’ THAT REFLECTS
BOTH COGNITIVE AND EMOTIONAL
ASPECTS OF CONSUMER DECISION
MAKING.
CONSUMER BEHAVIOUR
 IN EARLIER TIMES,MARKETERS COULD
UNDERSTAND CONSUMERS,WELL
THROUGH THE DAILY EXPERIENCE OF
SELLING TO THEM.
 BUT AS BOTH HAVE GROWN BIGGER,
MANY MARKETING DECISION MAKERS
HAVE LOST CONTACT WITH THEIR
CUSTOMERS
CONSUMER BEHAVIOUR

 MOST MARKETERS HAVE HAD TO
TURN TO CONSUMER RESEARCH.
 THEY ARE SPENDING MORE MONEY
TO LEARN ABOUT THE CONSUMER
BEHAVIOUR
CONSUMER BEHAVIOUR

 THE CENTRAL QUESTION IS THIS.
 “HOW DO CONSUMERS RESPOND TO
VARIOUS MARKETING STIMULI”?
 THE COMPANY THAT REALLY
UNDERSTANDS THIS,HAS A GREAT
ADVANTAGE OVER ITS
COMPETITORS.
CONSUMER BEHAVIOUR

THEREFORE,COMPANIES &
ACADEMICS HAVE HEAVILY
RESEARCHED THE RELATIONSHIP
BETWEEN MARKETING STIMULI AND
CONSUMER RESPONSE.
CONSUMER BEHAVIOUR

 CONSUMER PURCHASES ARE
STRONGLY INFLUNCED BY
CULTURAL,SOCIAL,PERSONAL &
PSYCHOLOGICAL CHARACTERISTICS
 WE SHALL EXAMINE THE
CHARACTERISTICS THAT AFFECT A
CONSUMER’S BEHAVIOUR.
CONSUMER BEHAVIOUR

 CULTURAL FACTORS.
 SOCIAL FACTORS.
 PERSONAL FACTORS.
 PSYCHOLOGICAL FACTORS.
CONSUMER BEHAVIOUR
 CULTURAL FACTORS:-
 THEY EXERT THE BROADEST &
DEEPEST INFLUNCE ON CONSUMER
BEHAVIOUR.
 HENCE THE MARKETER NEEDS TO
UNDERSTAND THE ROLES PLAYED
BY THE BUYER’S CULTURE,SUB-
CULTURE&SOCIAL CLASS.
CONSUMER BEHAVIOUR

 CULTURE:-
 IS THE MOST BASIC CAUSE OF A
PERSON’S WANTS & BEHAVIOUR.
 MARKETERES ARE ALWAYS TRYING
TO SPOT CULTURAL SHIFTS IN
ORDER TO IMAGINE NEW PRODUCTS
THAT MIGHT BE WANTED.
CONSUMER BEHAVIOUR

FOR Eg THE CULTURAL SHIFT
TOWARD GREATER CONCERN
ABOUT HEALTH & FITNESS HAS
CREATED A HUGE INDUSTRY FOR
EXERCISE EQUIPMENT AND
CLOTHING,LIGHTER FOOD&HEALTH
AND FITNESS SERVICES.
CONSUMER BEHAVIOUR

 SUBCULTCURE:-
 EACH CULTURE CONTAINS
SMALLER SUBCULTURES,OR
GROUPS WITH SHARED VALUE
SYSTEMS BASED ON COMMON LIFE
EXPERIENCES AND SITUATIONS.
CONSUMER BEHAVIOUR
 NATIONALITY GROUPS SUCH AS
IRISH,POLISH,ITALIANS etc ARE
FOUND WITHIN LARGER
COMMUNITIES AND HAVE DISTINCT
ETHENIC TASTES AND
INTERESTS.RELIGEOUS GROUPS
SUCH AS CATHOLICS,JEWS ARE
SUBCULTURES WITH THEIR OWN
PREFERENCES AND TABOOS.
CONSUMER BEHAVIOUR.

SOCIAL CLASS:-
ALMOST EVERY SOCIETY HAS SOME FORM
OF SOCIAL CLASS STRUCTURE.
SOCIAL CLASS IS NOT DETERMINED BY A
SINGLE FACTOR SUCH AS INCOME BUT IS
MEASURED SUCH AS COMBINATION OF
OCCUPATION,INCOME,EDUCATION,WEAL-
TH AND OTHER VARIABLES.
CONSUMER BEHAVIOUR
 A CONSUMER’S BEHAVIOUR IS ALSO
INFLUENCED BY SOCIAL FACTORS SUCH
AS CONSUMERS SMALL GROUPS,FAMILY
AND SOCIAL ROLES AND STATUS.
 THESE SOCIAL FACTORS CAN STRONGLY
AFFECT CONSUMER RESPONSES HENCE
COs MUST TAKE THEM INTO ACCOUNT
WHEN DESIGNING THEIR MARKETING
STRATEGIES
CONSUMER BEHAVIOUR

 GROUPS:-A PERSONS BEHAVIOUR IS
INFLUENCED BY MANY SMALL
GROUPS.
 GROUPS WHICH HAVE DIRECT
INFLUENCE AND TO WHICH A
PERSON BELONGS ARE CALLED
MEMBERSHIP GROUPS.
CONSUMER BEHAVIOUR

 REFERENCE GROUPS ARE GROUPS
THAT SERVE AS DIRECT(FACE TO
FACE) OR INDIRECT POINTS OF
COMPARISON OR REFERENCE IN
FORMING OF A PERSONS ATTITUDES
OR BEHAVIOUR.
CONSUMER BEHAVIOUR

 PERSONAL FACTORS:-
 PEOPLE CHANGE THE GOODS AND
SERVICES THEY BUY OVER THEIR
LIFE TIME. FOR Eg EAT BABY FOOD
DURING INFANCY,MOST FOODS
DURING GROWING
STAGES&SPECIAL DIETS DURING
LATER YEARS
CONSUMER BEHAVIOUR

 THEIR TASTE IN CLOTHS ,OTHER
LIVING STYLES,RECREATION ARE
ALSO AGE RELATED.
CONSUMER BEHAVIOUR

 PSYCHOLOGICAL FACTORS:-
 A PERSONS BUYING CHOICES ARE
INFLUENCED BY 4 MAJOR
PSYCHOLOGICAL FACTORS SUCH AS
MOTIVATION,PERCEPTION,LEARNIN
G & BELIEFS AND ATTITUDES.
MARKET SEGMENTATION

 ‘MS’ CAN BE DEFINED AS THE
PROCESS OF DIVIDING A MARKET
INTO DISTINCT SUB-SETS,WITH
COMMON NEEDS &
CHARECTERISTICS & SELECTING
ONE OR MORE SEGMENTS TO
TARGET,WITH A DISTINCT
MARKETING MIX.
MARKET SEGMENTATION

 IF ALL THE CONSUMERS WERE
ALIKE & IF ALL OF THEM HAD THE
SAME NEEDS,WANTS,DESIRES,THE
SAME BACK GROUND,EDUCATION &
EXPERIENCE,THEN MARKETING
WOULD BE A LOGICAL STRATEGY.
MARKET SEGMENTATION

 ITS PRIMARY ADVANTAGE IS THAT
IT COSTS LESS,ONLY ONE ADVT
CAMPAIGN IS NEEDED,ONLY ONE
MKTNG STRATEGY IS DEVELOPED &
USUALLY ONE STANDERDISED
PRODUCT IS OFFERED.
MARKET SEGMENTATION
 THE STRATEGY OF SEGMENTATION
ALLOWS PRODUCERS TO AVOID A
HEAD ON COMPETITION,IN THE
MARKET BY DIFFERENTIATING
THEIR OFFERINGS,NOT ONLY ON
THE BASIS OF PRICE BUT ALSO
THROUGH GOOD STYLING,PACKING,
PROMOTIONAL APPEAL,METHOD OF
DISTRIBUTION & SUPERIOR SERVICE.
MARKET SEGMENTATION
 ‘MS’ IS THE 1st JUST THE 1st STEP IN A 3
PHASE MARKETING STRATEGY.
 A} MARKETER TO SEGMENT THE MARKET
INTO HOMOGENOUS CLUSTERS & SELECT
ONE OR MORE SEGMENTS TO TARGET.
 B}TO ACCOMPLISH THIS,MARKETER MUST
DECIDE ON A SPECIFIC MARKETING-MIX ie
PRODUCT,PRICE,CHANNEL etc
MARKET SEGMENTATION

 C} POSITIONING THE PRODUCT SO
THAT IT IS PERCEIVED BY THE
CONSUMER,IN EACH TARGET
SEGMENT,AS SATISFYING THEIR
NEEDS,BETTER THAN THE OTHER
COMPETITIVE BRANDS.
MARKET SEGMENTATION
 WHO USES ‘MS’:-
 RETAILERS,Eg:REYMONDS,MERCEDES etc.
 GAPS INC TARGET DIFFERENT AGE
GROUPS,INCOME & LIFE STYLE SEGMENTS
IN A DIVERSITY OF RETAIL OUT
LETS.GAPS & SUPER GAP STORES ARE
DESIGNED TO ATTRACT A WIDE AGE
GROUP OF CUSTOMERS WHO SEEK A
CASUAL AND RELAXED STYLE OF
DRESSING
MARKET SEGMENTATION

 HOTELS ALSO SEGMENT THEIR
MARKETS & TARGET DIFFERENT
CHAINS TO DIFFERENT MARKET
SEGMENT.
MARKET SEGMENTATION

 HOW ‘MS’ OPERATES:-
 SEGMENTATION STUDIES ARE
DESIGNED TO DISCOVER THE NEEDS
& WANTS OF SPECIFIC GROUPS SO
THAT SPECIALIZED GOODS &
SERVICES CAN BE DEVELOPED &
PROMOTED,IN ORDER TO SATISFY
EACH GROUPS NEED.
MARKET SEGMENTATION
 MANY NEW PRODUCTS HAVE BEEN
DEVELOPED TO FILL GAPS IN THE
MARKET PLACE,REAVEALED BY
SEGMENTATION RESEARCH.
 FOR Eg ‘CENTRIUM’ HAS DEVELOPED A
VARIETY OF FOCUSSED FORMULA
VITAMIN PRODUCTS THAT ARE DESIGNED
TO APPEAL DIRECTLY TO INDIVIDUALS
WITH SPECIFIC HEALTH ISSUE[Centrium
prostrate,heart,bone etc)
MARKET SEGMENTATION
 BASES FOR SEGMENTATION:-
 THE FIRST STEP IN DEVELOPING A
SEGMENTATION STRATEGY IS TO
SELECT THE MOST APPROPRIATE
BASE ON WHICH,TO SEGMENT THE
MARKET.
 THEY INCLUDE THE FOLLOWING
FACTORS:
MARKET SEGMENTATION
 A]GEORAPHIC FACTORS:
 MARKET DIVIDED BY LOCATION.
 THE THEORY BEHIND THUS STRATEGY IS
THAT PEOPLE WHO LIVE IN THE SAME
AREA,SHARE SOME SIMILAR NEEDS &
WANTS AND THOSE NEEDS & WANTS
DIFFER FROM THOSE OF PEOPLE LIVING
IN OTHER AREAS.Eg:SOME FOOD
PRODUCTS SELL BETTER IN ONE MARKET
THAN THE OTHER.TEA,COFFEE etc
MARKET SEGMENTATION

 B] DEMOGRAPHIC SEGMENTATION:
 SUCH AS AGE(INVESTMENT
DECISIONS),SEX(LADIES COSMETICS
etc),MARITAL
STATUS,INCOME,EDUCATION,OCCU-
PATION etc.
MARKET SEGMENTATION

 PSYCHOLOGICAL SEGMENTATION.
 REFER TO THE INNER OR INTRENSIC
QUALITIES OF THE INDIVIDUAL
CONSUMER( based on
motivation,perception,personality etc.)
MARKET SEGMENTATION
 PSYCHOGRAPHIC SEGMENTATION.
 CLOSELY ALIGNED WITH
PSYCHOLOGICAL
RESEARCH,ESPECIALLY PERSONALITY &
ATTITUDE DEVELOPMENT.THIS FORM OF
APPLIED CONSUMER RESEARCH( referred to
as ‘life style analysis)HAS PROVED TO BE A
VALUABLE MARKETING TOOL.
MARKET SEGMENTATION

 THE PSYCHOGRAPHIC PROFILE OF A
CONSUMER SEGMENT CAN BE
THOUGHT OF AS A COMPOSITE OF
CONSUMER’S MEASURED
ACTIVITIES,INTERESTS & OPINIONS
(AIOs).
CONSUMER DECISION
MAKING.(CDM)
 SELECTING FROM AMONG A GROUP OF
ALTERNATIVES.
 AT TIMES WE ARE LEFT WITH NO OPTION
BUT TO ACCEPT & IS LITERALLY FORCED
TO MAKE A PURCHASE.(usage of a prescribed
medication).THIS IS A SINGLE “NO-
CHOICE”INSTANCE.SUCH NO-CHOICE
DECISIONS ARE REFERRRED TO AS
‘HOBSON’S CHOICE’.
CDM

 PROBLEM RECOGNITION.
 INFORMATION SEARCH.
 ALTERNATIVE EVALUATION &
SELECTION.
 PURCHASE.
 POST-PURCHASE BEHAVIOUR
CDM
 LEVELS OF ‘CDM’:
 NOT ALL THE ‘CDM’ SITUATIONS RECEIVE THE SAME
DEGREE OF INFORMATION SEARCH.IF ALL PURCHASE
DECISIONS REQUIRED

EXTENSIVE,THEN THE ‘CDM’ WOULD BE AN
EXHAUSTING PROCESS THAT LEFT LITTLE TIME FOR
ANYTHING.ON WOULD LITTLE PRESSURE ON A
CONTINUUM OF THE OTHER HAND IF ALL THE
PURCHASES WERE ROUTINE,THEN THEY TEND TO BE
MONOTONOUS & EFFORTS RANGING FROM VERY
HIGH TO VERY LOW.
CDM

 WE CAN DISTINGUISH 3 SPECIFIC
LEVELS OF ‘CDM’. THEY ARE ..
 A] EXTENSIVE PROBLEM SOLVING,
 B] LIMITED PROBLEM SOLVING &
 C] ROUTINEZIED RESPONSE
BEHAVIOUR.
CDM
 EXTENSIVE PROBLEM SOLVING:
 WHEN CONSUMERS HAVE NO
ESTABLISHED CRITERIA FOR
EVALUATING A PRODUCT CATEGORY OR
SPECIFIC BRANDS IN THAT CATEGORY OR
HAVE NOT NARROWED THE NUMBER OF
BRANDS THEY WILL CONSIDER TO A
SMALL SUBSET,THEIR DECISION MAKING
EFFORTS CAN BE CLASSIFIED AS
‘EXTENSIVE PROBLEM SOLVING’.
CDM
 LIMITED PROBLEM SOLVING:
 AT THIS LEVEL OF PROBLEM
SOLVING,CONSUMERS ALREADY HAVE
ESTABLISHED THE BASIC CRITERIA FOR
EVALUATING THE PRODUCT
CATEGORY.HOWEVER,THEY HAVE NOT
FULLY ESTABLISHED PREFERENCES
CONCERNING A GROUP OF BRANDS
CDM

 ROUTINIZED RESPONSE BEHAVIOUR:
 AT THIS LEVEL,CONSUMERS HAVE
EXPERIENCE WITH THE PRODUCT
CATEGORY & A WELL ESTABLISHED
SET OF CRITERIA,WITH WHICH TO
EVALUATE THE BRANDS,THEY ARE
CONSIDERING.
MODELING ‘CDM’
 HOWARD-SHETH MODEL OF BUYING
BEHAVIOUR:
 MODEL ATTEMPTS TO EXPLAIN THE
COMPLEXITY OF ‘CDM’ IN CASE OF
INCOMPLETE INFORMATION.
 INPUTS: THESE ARE STIMULI WHICH
AFFECT THE POTENTIAL CONSUMERS
DECISION PROCESS;THE VERBAL & NON-
VERBAL ELEMENTS OF PRODUCT & THE
FEEDBACK GIVEN BY THE CONSUMERS.
MODELING ‘CDM’

 PERCEPTUAL CONSTRUCTS: THESE
VARIABLES ARE CONCERENED WITH
PROCESSING DONE BY THE
POTENTIAL CONSUMERS WITH
RESPECT TO ALL THE INFORMATION
AVAILABLE TO THEM.CONSUMERS
MAY NOT MENTALLY REGISTER ALL
THE AVAILABLE INFORMATION
MODELING ‘CDM’
 CONSUMERS MAY ACTIVELY SEEK
INFORMATION BUT ALL THE
INFORMATION MEANING MAY NOT
BE CLEAR TO THEM(STIMULUS
AMBIGUITY).MOREOVER
CONSUMERS WILL PROCESS THIS
ATTENDED INFORMATION WITH
THEIR OWN REFERENCE POINT
LEADING TO BIAS.
MODELING ‘CDM’

 LEARNING CONSTRUCTS:THE
PECPETUAL CONSTRUCTS WILL
INFLUENCE THE LEARNING
CONSTRUCTS WHICH HAVE DIRECT
LINKAGES WITH THE PRODUCT
ITSELF.
MODELING ‘CDM’
 THESE LEARNING CONSTRUCTS ARE;
 A] OBJECTIVES OF PURCHASE,
 B] CRITERIA FOR EVALUATION OF
PRODUCT,
 C] ATTITUDE TOWARDS PRODUCT,
 D] CONSUMER’S BUYING INTENTIONS,
 E] PURCHASE &
 F] POST PURCHASE FEEDBACK.
MODELING ‘CDM’

 OUT PUT; THIS IS THE FINAL ‘CDM’
WHICH IS ACTUALLY FOLLOWED BY
THE CONSUMERS AFTER
PROCESSING THE INFORMATION
MODELIN ‘CDM’

 ALTHOUGH THE HOWARD-SHETH
MODEL OF BUYING BEHAVIOUR IS
QUITE HELPFUL IN UNDERSTANDING
‘CDM’,IT FAILS,IN CLEARLY
DEFINING,ALL THE ASPECTS OF THE
MODEL.MOREOVER,THIS MODEL IS
QUITE COMPLEX & DIFFICULT TO
UNDERSTAND.
MODELING ‘CDM’
 THE NICOSIA MODEL: ALSO CALLED AS
‘SYSTEMS MODEL’ EXPLAINS THE
CONSUMER’S BUYING BEHAVIOUR FROM THE
MARKETER’S PERSPECTIVE.THE MODEL
SUGGESTS THAT THE MARKETER’S
COMMUNICATION CAN INFLUENCE THE
CONSUMERS ATTITUDE TOWARDS THE
PRODUCT & TRIGGER CONSUMER INTEREST.
MODELING ‘CDM’
 THE NECOSIA MODEL HAS 4 MAIN
FIELDS,WHICH HAVE SEPARATE
COMPONENTS.
 1] ATTRIBUTES OF THE FIRM &
CONSUMER: THIS INFLUNCE THE
CONSUMER PREDISPOSITION.THIS
COMMUNICATION FLOW,FROM THE
MARKETER TO CONSUMER IS
INTERPRETED ON THE BASIS OF VARIOUS
SOCIO-ENVIRONMENTAL FACTORS LIKE
AWARENESS,MOTIVATION & PERCEPTION
MODELING ‘CDM’
 2] SEARCH & EVALUATION;
 THE CONSUMER WILL SEARCH &
EVALUATE THE BRAND ESPECIALLY IF
THERE ARE OTHER RELEVANT
ALTERNATIVES AVAILABLE.
 THE MODEL SUGGESTS THAT THE
PRODUCT EVALUATION WILL LEAD TO A
MOTIVATION,TO MAKE THE PURCHASE
DECISION..
MODELING ‘CDM’

 3] PURCHASE DECISION;
 CONSUMER PURCHASE INTENTION
LEADS TO FINAL PURCHASE
DECISION WITH RESPECT TO THE
PARTICULAR PRODUCT.
MODELING ‘CDM’

 4] CONSUMPTION & FEEDBACK;
 THE FINAL FIELD IN THIS MODEL
EXPLAINS THE
CONSUMPTION,WHICH WILL
GENERATE CONSUMER FEEDBACK
MODELING ‘CDM’
 CRITICISM: THIS MODEL EMPHAZISES THAT
PURCHASE IS NOT THE ONLY ASPECT OF
‘CDM’, & THERE IS MORE TO IT.
 IT ALSO CLEARLY SHOWS THE LOGICAL FLOW
OF CONSUMER’S STATE FROM GENERAL
PRODUCT KNOWLEDGE,TO ACTIVE INTEREST
IN A PARTICULAR PRODUCT.
MODELING ‘CDM’

 HOWEVER,IT FAILS TO EXPLAIN,IN
DETAIL THE FIRM’S & CONSUMER’S
ATTRIBUTES.
 IT ALSO DOESN’T TAKE INTO
ACCOUNT THE POSSIBILITY THAT
CONSUMER MAY ALREADY BE
HAVING A PREDISPOSITION WITH
RESPECT TO A SPECIFIC PRODUCT.
MODELING ‘CDM’

 ENGEL-BLACKWELL-MINIARD
MODEL(EBM MODEL):
 MODEL ASSUMES THAT THE
CONSUMERS TAKE A PROBLEM-
SOLVING APPROACH.THEREFORE
‘CDM’ PROCESS WILL START IF
CONSUMER HAS A NEED OR
PROBLEM.
MODELING ‘CDM’

 EBM MODEL HAS 4 SECTIONS:
 1] INPUT; THE INFORMATION
RECEIVED BY THE CUSTOMER CAN
BE FROM INTERNAL
SOURCE(memory,experience) OR
EXTERNAL SOURCES
(family,friends,advertisements,
MODELING ‘CDM’

 2] INFORMATION PROCESSING;
 THE INPUT INFORMATION FROM
VARIOUS SOURCES IS PROCESSED
FOR RE-PURCHASE EVALUATION BY
THE CONSUMER.
MODELING ‘CDM’

 3] DECISION PROCESS; STEPS
 # Need recognition,
 # Information search & processing,
 # Pre-purchase evaluation of options
 # Purchase,
 # Consumption,
 # Post-consumption evaluation
MODELING ‘CDM’

 4] VARIABLES INFLUNCING
DECISION PROCESS;
 THE DECISION PROCESS IS AIDED BY
VARIOUS INDIVIDUAL VARIABLES
LIKE.. resources,motivation,product
involvement,knowledge,attitude,personality
values & life style etc
DECISION RULES

 ARE THE AIDS WHICH HELP
CONSUMERS TO MAKE EASY BRAND
CHOICES.
 5 TYPES OF DECISION RULES FOR
MAKING BRAND CHOICE.
DECISION RULES

 CONJUNCTIVE Dc R,
 DISJUNCTIVE Dc R,
 ELIMINATION-BY-ASPECTS,
 LEXICOGRAPHIC &
 COMPENSATORY.
DECISION RULES

 1] CONJUNCTIVE;
 CONSUMERS SET SOME MINIMUM
PERFORMANCE STANDARD,AS
REQUIRED BY THEM.
 ALL THE BRANDS MEETING THESE
MINIMUM STANDARDS ARE
SELECTED FOR CONSIDERATION.
DECISION RULES
 2] DISJUNCTIVE Dc R;
 CONSUMERS EXPECT VERY HIGH
PERFORMANCE STANDARDS BASED
ON CERTAIN IMPORTANT PRODUCT
ATTRIBUTES.
 MARKETER MUST FOCUS ON
ASSOCIATING THEIR BRANDS WITH
AT LEAST ONE SUCH ATTRIBUTE.
DECISION RULES

 THE BRANDS RELATION WITH THIS
ATTRIBUTE SHOULD BE
EMPHASIZED AT EVERY CONSUMER
& BRAND INTERACTION POINT,SAY,
MASS MEDIA,POINT OF PURCHASE
DISPLAYS,MESSAGE OF THE
PRODUCT PACKAGE etc.
DECISION RULES

 3] ELIMINATION-BY-ASPECTS Dc R;
 HERE CONSUMERS RANK THE
EVALUATIVE CRITERIA ON THE
BASIS OF THIR IMPORTANCE LIKE
PRICE TAG,QUALITY,WARRANTY etc.
DECISION RULES

 EACH BRAND IS CONSIDERED
AGAINST THE MOST IMPORTANT
EVALUATION CRITERIA(price) & THE
BRANDS WHICH FAIL TO MEET THE
SET CUT-OFF POINTS ARE
ELIMINATED.
DECISION RULES

 IN CASE,TWO OR MORE BRANDS
MEET THE CUT OFF POINTS FOR THE
EVALUATION CRITERION,THEY ARE
CONSIDERED AGAINST THE SECOND
MOST IMPORTANT CRITERION.
DECISION RULES

 4] LEXOGRAPHIC Dc R;
 HERE THE CONSUMERS RANK THE
IMPORTANT PRODUCT EVALUATION
CRITERIA & FIRST CONSIDER EACH
BRAND’S MAXIMUM PERFORMANCE
AGAINST THE MOST IMPORTANT
CRITERIA.
DECISION RULES
 THE LOGIC IS THAT BRAND WILL
OUTPERFORM EACH OTHER AND
CONSUMER WILL CHOOSE THE BEST
BRAND IN ALL ASPECTS.
 IF TARGET CUSTOMERS USE THIS Dc-
R,THE MARKETERS SHOULD TRY TO
MAKE THEIR BRANDS BETTER THAN THE
NEAREST COMPETITION ON ALL THE
IMPORTANT ATTRIBUTES.
DECISION RULES

 COMPENSATORY Dc R; IN THIS RULE
THE BASIC UNDERSTANDING IS
THAT GOOD PERFORMANCE,IN ONE
IMPORTANT ATTRIBUTE,CAN MAKE
UP FOR POOR PERFORMANCE,IN
ANOTHER PRODUCT ATTRIBUTE.
DECISION RULES

 THEREFORE,IN THIS
DcR,CONSUMERS DERIVE THE
AVERAGE OVERALL PERFORMANCE
OF EACH BRAND & THE ONE WHICH
REACHES HIGHEST LEVEL IS
CHOSEN.
DECISION RULES

 TYPES OF CONSUMER DECISIONS;
 1] HABITUAL Dc M,
 11] LIMITED Dc M,
 111] EXTENDED Dc M.
DECISION RULE
 ! HABITUAL Dc Mk:-
 USUALLY OCCURS WHEN THERE IS
LOW PRICE INVOLVEMENT.
 CONSUMER DOES NOT CONSIDER
OTHER ALTERNATIVES & Dc Mk
OCCURS WITH THE HELP OF
INTERNAL INFORMATION (memory &
past experience).
DECISION RULES
 HABITUAL Dc Mk : 2 TYPES; viz,
 BRAND LOYAL&REPEAT PURCHASE.
 Br Ly Dc OCCURS AFTER A LOT OF TRIAL &
ERROR,WITH VARIOUS OPTIONS
AVAILABLE.
 FROM THESE OPTIONS HE/SHE CHOOSES
ONE BRAND,WHICH MEETS ALL HIS
NEENDS & THEN STICKS TO IT.
DECISION RULES

 A REPEAT PURCHASE Dc OCCURS
WHEN THE CONSUMER BELIEVES
THAT ALL BRANDS IN ONE PRODUCT
CATEGORY ARE SAME & THEN TRIES
ANY ONE BRAND & FINDS IT
SATISFACTORY & THEN
REPEATEDLY PURCHASES IT WITH
OUT TRYING ANY OTHER BRAND.
DECISION RULES

 !! LIMITED Dc Mk:- CONSUMER
EVALUATES LIMITED OPTIONS,&
MAKES A CHOICE BASED MORE ON
INTERNAL INFORMATION SEARCH &
SOME EXTERNAL INFORMATION
SEARCH(product attributes,discounts etc)
DECISION RULES

 EXTENDED Dc Mk:-
 HERE CONSUMERS EVALUATE A
LARGE NUMBER OF ALTERNATIVES,
AFTER CONDUCTING AN EXTENSIVE
INFORMATION SEARCH FROM BOTH
INTERNAL & EXTERNAL SOURCES.
DECISION RULES
 DUE TO LARGE NUMBER OF
ALTERNATIVES TO CHOOSE FROM &
OVER ALL HIGH PURCHASE
INVOLVEMENT,THIS KIND OF Dc Mk IS
CONSIDERED TO BE COMPLEX &
GENERALLY ASSOCIATED WITH HIGH
PRODUCT INVOLVEMENT,LIKE REAL
ESTATE,ELECTRONIC GADGETS etc.
PERSONALITY

 PERSONALITY IS DEFINED AS THOSE
INNER PSYCHOLOGICAL CHARECTE-
RISTICS THAT BOTH DETERMINE &
REFLECT,HOW A PERSON RESPONDS
TO HIS/HER ENVIRONMENT.
PERSONALITY

 IN THIS STUDY 3 DISTINCT ASPECTS.
 !) REFLECTS INDIVIDUAL
DIFFERENCES,
 !!) IS CONSISTENT & ENDURING,
 !!!) CAN CHANGE.
PERSONALITY THEORIES

! FREUDIAN THEORY,
 !! NEO-FREUDIAN THEORY,
 !!! TRAIT THEORY.
FREUDIAN THEORY

 BASED ON MODERN PSYCHOLOGY.
 PROPSED BY SIGMUND FREUD.
 HE WAS A DOCTOR BY PROFESSION
WITH SPECIAL INTEREST ON
PSYCHOLOGY.
FREUDIAN THEORY

 IS BASED ON THE HYPOTHESIS THAT
THE HUMAN BEHAVIOUR IS DRIVEN
BY THE UNCONSCIOUS
MOTIVES,THAT A PERSON HAS &
THAT THESE MOTIVES ARE
INFLUENCED BY THAT PERSON’S
BIOLOGICAL
NEEDS(air,water,cloth,shelter etc)
FREUDIAN THEORY

 IT PROJECTS THE PERSONALITY AS
THE NUCLEUS OF INTERACTION
AMONG THE SYSTEMS viz id, superego
& the ego.
FREUDIAN THEORY

 Id:- IS A STATE OF MIND THAT
INFLUNCES A PERSONS
STRONG,POWERFUL & INTENSE
DESIRE TO SATISFY HIS/HER NEEDS
SUCH AS HUNGER,THIRST & SEX.
FREUDIAN THEORY

 A PERSON GUIDED BY THE Id,
USUALLY ACTS SPONTANEOUSLY &
SEEKS TO SATISFY THESE NEEDS
IMMEDIATELY.
 HERE,THE PERSON PERSUES THESE
NEEDS WITH A PRIMITIVE ZEAL.
FREUDIAN THEORY
 SUPEREGO:- IS THE SYSTEM THAT
DIRECTS A PERSONS PSYCHE WITH
REGARD TO HIS/HER BEHAVIOUR AS
A SOCIAL BEING.
 IT HOUSES A PERSON’S DISPOSITION
AS SOCIAL BEING& REFERS TO THE
MORALS& ETHICS OF SOCIETY.
 IT IS THE OPPOSITE OF Id.
FREUDIAN THEORY

 THE EGO:- IS AT THE ROOT OF
OBJECTIVE THINKING.
 IT IS CONCERENED WITH
CONFORMING BEHAVIOUR WITH
THE NORMS OF THE SOCIETY.
 IT OPERATES ON REALISTIC
PRINCIPLE.
FREUDIAN THEORY

 IT ENSURES THAT EVERY NEED IS
PERSUED & SATISFIED IN KEEPING
WITH THE CONSTRAINTS OF A
PERSON’S ENVIRONMENT.
FREUDIAN THEORY

 THUS,THE EGO ENABLES A PERSON
TO EXERCISE A CONSCIOUS
CONTROL OVER THE Id & HELPS TO
COMPLY WITH THE SUPEREGO IN
THE PROCESS OF SATISFYING THE
WANTS.
NEO-FREUDIAN THEORY

 SEVERAL OF FREUD’S FRIENDS
DISAGREED WITH HIS CONTENTION
THAT PERSONALITY IS PRIMARILY
INSTINCTUAL & SEXUAL IN NATURE.
 THESE NEO-FREUDIANS BELIEVED
THAT SOCIAL RELATIONSHIPS ARE
FUNDAMENTAL TO THE FORMATION
& DEVELOPMENT OF PERSONALITY
TRAIT THEORY

 THEORY TRIES TO BRING A
QUANTATIVE APPROACH TO THE
PERSONALITY THEORY.
 IT SAYS THAT THE PERSONALITY OF
A PERSONS DEPENDS ON HIS/HER
INHERENT TRAITS.
TRAIT THEORY
 THIS THEORY TRIES TO STUDY
PERSONALITY IN TERMS OF EXCLUSIVE
INDIVIDUAL CHARECTERSTICS CALLED
‘TRAITS’.
 A TRAIT IS DEFINED AS “ANY
DISTINGUISHING,RELATIVELY ENDURING
WAY IN WHICH ONE INDIVIDUAL DIFFERS
FROM ANOTHER”
TRAIT THEORY

 THE THEORY SAYS THAT THE
CONSUMERS DIFFER IN THE NATURE
OF CONSUMPTION DUE TO
DIFFERENCES IN THESE TRAITS.
 A MARKETER NEED TO
CONCENTRATE ON A TRAIT & HOW
IT AFFECTS THE BEHAVIOUR
TRAIT THEORY

 A CONSUMER’S DECISION COULD BE
DOMINATED BY ONE OF THE
FOLLOWING PERSONALITY TRAITS,
 INNOVATION,
 INFLUENCE,
 MATERIALISM &
 CONSUMER ETHNOCENTRISM.
TRAIT THEORY

 INNOVATION:
 THE CONSUMERS COULD BE
RECEPTIVE TO CHANGES OR ABHOR
THEM.
TRAIT THEORY

 INFLUENCE:THE MARKETER MUST
KEEP IN MIND THAT SOME
CONSUMERS ARE INDEPENDENT
WHILE MAKING THEIR PURCHASE
DECISIONS,WHILE OTHERS ARE
INFLUENCED BY THE WORD OF
MOUTH INFORMATION THEY GET
REGARDING THE PRODUCT.
TRAIT THEORY

 MATERIALISM:
 SOME CONSUMERS INVEST IN
MATERIAL POSSESSIONS FOR A
COMFORTABLE LIFE,
WHEREAS,OTHERS INDULGE IN
ACQUIRING GOODS NOT JUST FOR
UTILITY BUT TO EXPRESS THEIR
PERSONALITY.
TRAIT THEORY

 CONSUMER ETHNOCENTRISM:
 IN TODAY’S MARKET SCENARIO, A
MAJORITY OF CONSUMERS HAVE
ACCESS TO PRODUCTS FROM ROUND
THE WORLD.
TRAIT THEORY

 HOWEVER,SOME CONSUMERS
FAVOUR FOREIGN MADE GOODS
WHILE OTHERS ARE AGAINST THEM
CONSUMER PERCEPTION

 PERCEPTION IS DEFINED AS “the
process by which the individual
selects,organises & interprets stimuli into a
meaningful & coherent picture of the
world”.
CONSUMER PERCEPTION

 THUS,THE PERCEPTION HE FORMS
ABOUT A PRODUCT BY SELECTING
ITS PACKAGE,THE COLOUR.THE
SYMBOL OF THE BRAND & THE
LOGO ASSOCIATED WITH THE
BRAND IN THE BRAND IN THE
MARKET etc.
CONSUMER PERCEPTION

 ELEMENTS OF PERCEPTION: ARE,
 SENSATION,
 ABSOLUTE THRESHOLD,
 DIFFERENTIAL THRESHOLD &
 SUBLIMINAL PERCEPTION
CONSUMER PERCEPTION

 ! SENSATION;
 WHEN A PERSON IS EXPOSED TO
ANY OF THE MARKETING STIMULI
OR AN Ad ,THE FIRST REFLEX THAT
IS INITIATED IN HIM/HER IS KNOWN
AS SENSATION.
CONSUMER PERCEPTION

 ABSOLUTE THRESHOLD:
 THE LOWEST DEGREE OF SENSORY
INPUTS AT WHICH THE CONSUMER
BECOMES AWARE OF A SENSATION
IS CALLED AS ABSOLUTE
THRESHOLD.(the n jingle of a shoe polish
being aired on the radio in a crowded place
on a Monday morning may not attended)
CONSUMER PERCEPTION

 SUBLIMINAL PERCEPTION:
 CAN BE LITERALLY TERMED AS
SUBCONSCIOUS.
 THE SUBCONSCIOUS MIND OF AN
INDIVIDUAL STORES EVERY THING
THAT HE/SHE EXPERIENCES
CONSUMER PERCEPTION
 NORMALLY,THIS PROCESS TAKES PLACE
WITHOUT THE ACTUAL AWARENESS OF
THE PERSON BECAUSE THE THRESHOLD
LEVEL FOR ACTUAL AWARENESS IS
HIGHER THAN THAT OF ACTUAL
PERCEPTION
 MESSAGES THAT ARE NOT CONSCIOUSLY
REGISTERED IN OUR MEMORY ARE
CALLED AS SUBLIMINAL MESSAGES.
CONSUMER
INVOLVEMENT
 A YOUNG MAN-
 SPENDS MORE TIME FOR SELECTION
FOR BIKE ACCESSORIES( knows every-
thing related to that) THAN HE DOES IN
BUYING GROCERIES( usually picks up)
 HIS LEVEL IN 2 SEGMENTS
CONSUMER
INVOLVEMENT
 ANTECEDENTS OF INVOLVEMENT
 THE FACT THAT DETERMINE THE
CONSUMER’S INVOLVEMENT IN THE
PRODUCT,ARE CALLED AS THE
ANTECEDENTS OF INVOLVEMENT.
CONSUMER
INVOLVEMENT
 THE Eg OF ANTECEDENTS ARE,
^ PERSONAL,
^ STIMULUS & RESPONSE,
^ SITUATIONS
CONSUMER
INVOLVEMENT
 PERSONAL: THE CONSUMER VALUES
GOALS,ASPIRATIONS,BELIEFS AND
ALL OF THEM HAVE A MAJOR SAY IN
THE DEGREE OF HIS INVOLVEMENT
WHILE PURCHASING A PRODUCT OR
SERVICE.( person-ecofriedly-recycled
papers-avoid plastics…)
CONSUMER
INVOLVEMENT
 STIMULUS & THE OBJECT:THE
METHOD USED BY THE MARKETER
IN COMMUNICATING THE PRODUCT
TO THE CONSUMER DETERMINES
THE LEVEL OF INVOLVEMENT THAT
THE MARKETER CAN AROUSE IN
THE CONSUMER.( a mother-complan
advt )
CONSUMER
INVOLVEMENT
 SITUATIONS: INDIVIDUALS CAN
DISPLAY (HIGH/LOW) DIFFERENT
LEVELS OF INVOLVEMENT,MAY
ALSO BE RADICALLY
DIFFERENT(important/least important)
WHEN THEY BUY THE SAME
PRODUCT AT DIFFERENT POINT OF
TIME( buying flowers-occasions)
CONSUMER
INVOLVEMENT
 TYPES OF INVOLVEMENT:
 IS SIMPLE WHEN THE CONSUMER IS
AWARE OF ONLY THE BASIC
INFORMATION & HE/SHE DOESN’T
MAKE ANY EFFORT TO FIND OUT
MORE ABOUT THE PRODUCT.
CONSUMER
INVOLVEMENT
 INVOLVEMENT IS ELABORATE IN
WHICH CASE THE CONSUMER
MAKES THE EFFORT TO FURTHER
HIS/HER KNOWLEDGE ABOUT THE
PRODUCT OR SERVICE BY DOING A
LITTLE RESEARCH.
REFERENCE GROUPS

 HUMAN BEINGS BY NATURE LIKE TO
BE A PART OF A GROUP.
 A GROUP- TWO OR MORE INDIVIDU-
ALS-COMMON GOALS,BELIEFS etc.
 BROADLY 2 TYPES OF Ref Gr viz
NORMATIVE & COMPARATIVE
REFERENCE GROUPS

 NORMATIVE Ref Gr: INFLUENCE THE
REFERENT’S OVERALL VALUES &
BEHAVIOUR(eg:family).
 COMPARETIVE Ref Gr: ARE THE ONES
THAT THE INDIVIDUAL ASPIRES
TO,& WHICH SERVE AS A ROLE-
MODEL FOR ATTITUDE OR
BEHAVIOUR(senior at office/film star).
REFERENCE GROUPS

 ANOTHER CLASSIFICATION BASED
ON THE INTEACTION WITH THE REF-
ERENT: viz DIRECT & INDIRECT Ref Gr
 IN DIRECT Ref Gr THERE IS A
PERSONAL INTERACTION WITH THE
REFERENT( family member,friend etc)
REFERENCE GROUPS

 IN AN INDIRECT Ref Gr THERE IS NO
PERSONAL INTERACTION WITH THE
REFERENT(film stars,cricketers etc)
REFERENCE GROUPS

 SOME OF THE MAJOR Ref Gr ARE:
 FRIENDS,SHOPPING GROUPS,WORK
GROUPS,VIRTUAL
COMMUNITIES( internet-on line
shopping,helps to exchange views
etc),BRAND COMMUNITIES
(brand loyal people)
SOCIAL CLASS

 DEFINED AS,THE DIVISION OF A
SOCIETY INTO A HIERARCHY OF
DISTINCT STATUS CLASSES,SO THAT
MEMBERS OF EACH CLASS HAVE
RELATIVELY THE SAME STATUS &
MEMBERS OF ALL OTHER CLASSES
HAVE EITHER MORE OR LESS
STATUS
SOCIAL CLASS

 CHARACTERISTICS:
 1) RANK ORDERING(sc is ranked in
terms of social prestige)
 2)RELATIVE PERFORMANCE(sc are
relatively permanent charecterstics/person’s
sc doesen’t change from day to day)
SOCIAL CLASS

 3) INTERGENERATIONAL CLASS
MOBILITY: it is possible for a person to
move out of sc of his/her birth into a higher
or lower class by acquiring the values.
 4)INTERNAL HOMOGENEITY: classes
are homogenous with in each strata.persons
belonging to the same sc tend to be similar.
SOCIAL CLASS

THE SC MEMBERSHIP SERVES
CONSUMERS AS A FRAME OF
REFERENCE TOR THE
DEVELOPMENT OF THEIR
ATTITUDES & BEHAVIOUR.
SOCIAL CLASS

 CONSUMERS BUY CERTAIN GOODS.
 THEY BUY SOME PRODUCTS
BECAUSE THESE PRODUCTS ARE
FAVOURED BY MEMBERS OF EITHER
THEIR OWN OR HIGHER SC(automobile
SOCIAL CLASS

 CONSUMERS MAY AVOID OTHER
PRODUCTS BECAUSE THEY
PERCEIVE THE PRODUCTS TO BE OF
“LOWER CLASS” PRODUCTS(some
brands of dresses)
SOCIAL CLASS

 THE CLASSIFICATION OF SOCIETY’S
MEMBERS INTO SMALL NUMBER OF
SC HAS ALSO ENEBLED THE
RESEARCHERS TO NOTE THE
EXISTENCE OF SHARED
VALUES,ATTITUDES,BEHAVIORAL
PATTERNS AMONG MEMBERS WITH-
IN EACH SC
LEARNING

 DEFINED AS “ BEHAVIOURAL
MODIFICATION ESPECIALLY
THROUGH EXPERIENCE OR
CONDITIONING”.
 IS THE PROCESS OF GAINING
KNOWLEDGE.
LEARNING

 IS CONTINUOUS & ON-GOING
PROCESS.
 2 MAJOR THEORIES.
 BEHAVIOURAL & COGNITIVE
LEARNING THEORIES
LEARNING

 ACCORDING TO BEHAVIORAL
LEARNING THEORISTS,LEARNING
TAKES PLACE AS A RESPNSE TO
EXTERNAL STIMULI.
LEARNING

 COGNITIVE LEARNING THEORISTS
STATE THAT LEARNING IS PURELY A
MENTAL PROCESS INVOLVING THE
PROCESS OF INFORMATION.
 MOTIVATION,RESPONSE,REINFORC-
EMENT ARE THE BASIC
CHARECTERSTICS OF LEARNING.
LEARNING THEORIES

 LEARNING TAKES PLACE IN
RESPONSE TO AN EXTERNAL
STIMULI.
 2 THEORIES.viz,
 CLASSICAL CONDITIONING &
INSTRUMENTAL CONDITIONING
LEARNING THEORIES
 CLASSICAL CONDITIONING:
 IVAN PAVLOV,RUSSIAN PSYCHOLOGISTS.
 EXPERIMENT ON 60 DOGS.
 HUNGRY—BELL SOUND—MEAT PASTE ON
THE TONGUE– SALIVATING—REPEATED–
DOGS LEARNED TO ASSOCIATE SOUND
WITH MEAT PASTE--SALIVATE
LEARNING THEORIES

 MEAT PASTE(unconditioned stimulus)—
BELL SOUND(conditional stimulus).
 MARKETERS CONSISTENTLY
HIGHLIGHT THE +ve ASPECT OF
THEIR PRODUCTS/SERVICES( Chennai
packers)
LEARNING THEORIES

 INSTUMENTAL CONDITIONING:
 ALSO CALLED AS OPERANT
CONDITIONING.
 HERE THE STIMULUS THAT
PROVIDES THE MOST REWARDING
RESPONSE WILL BE LEARNED.
LEARNING THEORIES

 UNLIKE CLASSICAL CONDITIONING
THE RESPONSE TO STIMULI,HERE IS
ACTIVE,WHERE THE ORGANISM
SEEM TO ACTIVELY RESPOND TO
STIMULI,PROVIDED IT IS POSITIVE
LEARNING THEORIES

 B.F.SKINNER—EXPERIMENT ON
PIGEONS– SKINNER BOX—PIGEON
PLACED INSIDE—MOVED AROUND—
HIT A BAR –FOOD PALLETS.
 MORE NUMBER OF HITS REWARDED
FOOD PALLETS.
LEARNING THEORIES

 ACCORDING TO SKINNER,MOST
INDIVIDUAL LEARNING TAKES
PLACE IN CONTROLLED
ENVIRONMENTAL CONDITION
WHERE THE INDIVIDUAL IS
REWARDED FOR BEHAVING IN A
SPECIFIC MANNER.
LEARNING THEORIES

 A MARKETING Eg FOR
INSTRUMENTAL CONDITIONING
WOULD BE A PERSON PURCHASING
GROCERIES FROM THE SAME STORE
EVERY MONTH(cost
effective,quality,service etc)
PROBLEM RECOGNITION

 IS THE 1st PHASE OF ‘CDM’ PROCESS.
 WE HAD ALREADY STUDIED THE
CONCEPT OF ‘CDM’ IN OUR EARLIER
CLASSES.
 LET US HAVE A GLANCE OF THE
‘CDM’ PROCESS.
CONSUMER DECISION MAKING PROCESS

PROBLEM RECOGNITION

INFORMATION SEARCH

ALTERNATIVE EVALUATION & SELECTION

PURCHASE

POST PURCHASE BEHAVIOUR
PROBLEM RECOGNITION

 A PROBLEM CAN EASILY BE…..
 a) recognized…hunger/thirst,
 b) unrecognized…wt loss,med problems,
 c) planned…replenish weekly supplies,
 d) unplanned…automobile break down
PROBLEM RECOGNITION

 THE PROCESS OF ‘PRC’ IS INITIATED
WITH THE IDENTIFICATION OF A
GAP IN THE ACTUAL STAGE( a degree
to which a perceived need is being met) &
THE IDEAL OR DESIRED STAGE(the
ideal way the consumers want that need to
be met).
PROBLEM RECOGNITION

 A MAN,FOR Eg,IS BORED & FEELS A
MOVIE WILL BE A GOOD
ENTERTAINMENT.HERE,THE ACTUAL
STATE OF THE MAN IS,GETTING
BORED & HIS DESIRED STATE IS,TO
BE ENTERTAINED.
 THUS HE DECIDES TO GO FOR A FILM
PROBLEM RECOGNITION

 THE CONSUMER’S ACTUAL & DESIR-
ED STATES ARE NOT ABSOLUTE
STATES OF EXISTENCE.
 THEY ARE BASED ON CONSUMER’S
PERCEPTION OF WHAT THEIR ACTU-
AL STATE IS & WHERE THEY WANT
TO BE.
PROBLEM RECOGNITION

 THE DESIRED STATE OF CONSUMERS
KEEP CHANGING WITH THE SHIFT IN
THEIR STANDARDS OF COMPARISON
OR BENCHMARKS WITH WHICH
THEY COMPARE THEIR DESIRED
STATES.
PROBLEM RECOGNITION

 IT THUS,LEADS TO A FEELING OF
DISSATISFACTION & THEY TRY TO
REACH THE DESIRED STATE.
 THE CONCEPT SHALL BE EXPLAINED
AS FOLLOWS.
PROBLEM RECOGNITION

 A GIRL HAVING GOLD ORNAMENTS
(actual state) MAY WANT PLATINUM
(desired state) JEWELLERY.
 AFTER ACQUIRING A DESIRABLE
AMOUNT OF PLATINUM
JEWELLERY(changed actual state) SHE
MAY WANTS DIAMOND
JEWELLERY(changed desired state)
PROBLEM RECOGNITION
 SOME TIMES THE PERCEIVED NEED
OF A CONSUMER IS EASILY SATISFI-
ED WITH ANY PRODUCT,IN A PRODU-
CT CATEGORY(generic problem recognit-
tion):SAY,A CONSUMER MIGHT NOT
DIFFERENTIATE BETWEEN VARIOUS
BATHING SOAPS & PERCEIVES THAT,
ALL SATISFY HIS/HER PERCEIVED
NEED OF PERSONAL HYGEINE
PROBLEM RECOGNITION

 AT OTHER TIMES,THE PERCEIVED
NEED OF CUSTOMERS CAN BE
SATISFIED WITH A PARTICULAR
BRAND ONLY(specific problem recogniti-
on) SAY,ANOTHER CONSUMER WHO
BELIEVES HIS/HER NEED FOR THE
PERSONAL HYGIENE CAN BE BEST
MET WITH “DETTOL” SOAP ONLY.
PROBLEM RECOGNITION

 THE CONSUMER’S DESIRE,TO SOLVE
A PARTICULAR PROBLEM DEPENDS
ON, THE EXTENT OF GAP BETWEEN
ACTUAL & DESIRED STATE & THE
RELATIVE IMPORTANCE OF THE
PROBLEM COMPARED TO OTHER
PROBLEMS.
PROBLEM RECOGNITION

 IF THE EXTENT OF THE GAP
BETWEEN THE ACTUAL & DESIRED
STATE IS HIGH,THE LEVEL OF
DISSATISFACTION WILL
CREATE,THUS MOTIVATING
CONSUMERS TO RESOLVE THE
PROBLEM.
PROBLEM RECOGNITION

 ALSO IF THE RELATIVE
IMPORTANCE OF THE PROBLEM IS
MORE COMPARED TO OTHER
PROBLEMS,THE CONSUMERS WILL
BE MORE INCLINED TO RESOLVE
IT,AT THE EARLIEST
CONSUMER PROBLEM RECOGNITION PROCESS
a) Individual Variables (finance,previous
decisions) b) Environmental
Variables(culture,class etc)

DESIRED STATE ACTUAL STATE

CONSUMER PROBLEM RECOGNITION

NO CONSUMER ACTION
CONSUMER ACTION
PROBLEM RECOGNITION

DETERMINANTS OF PROBLEM
RECOGNITION:-
 CONSUMERS IN THE PRESENT MAY
EITHER BE AWARE OR UNAWARE OF THE
PROBLEM.
 SOMETIMES,CONSUMERS MAY NOT BE
AWARE OF THE PROBLEM IN THE
PRESENT,BUT WILL BE AWARE OF IT IN
THE NORMAL COURSE OF EVENTS.
PROBLEM RECOGNITION

 THUS,A CONSUMER PROBLEM MAY
EITHER BE ACTIVE(aware or will
become aware in normal course of events)
OR INACTIVE(unaware)
PROBLEM RECOGNITION
 THERE ARE NON-MARKETING & MARKETING
DETERMINANTS OF PROBLEM RECOGNITION.
 NON-MARKETING FACTORS WHICH AFFECT THE
ACTUAL & DESIRED STATE OF THE
CONSUMERS(demographics like age,sex, consumer’s past
decisions&consumer’s individual skills)
PROBLEM RECOGNITION

 A FAMILY OF FOUR NEED A CAR TO
TRAVEL COMFORTABLY;
 AN OLD PERSON WILL FEEL THE
NEED FOR MEDICINES & FOOD
SUPPLEMENTS;
 PEOPLE AT COLD COUNTRIES NEED
WOOLEN CLOTHES TO BE WARM
PROBLEM RECOGNITION

 MARKETING DETERMINANTS:-
 MARKETING EFFORTS ARE
CONTROLLED BY MARKETERS &
PLAY A KEY ROLE IN PROBLEM
RECOGNITION
PROBLEM RECOGNITION
 THERE ARE 4 RELEVANT ISSUES
FACED BY MARKETERS IN THIS
REGARD & THEY ARE LISTED
 @ TO IDENTIFY THE PROBLEMS
CONSUMERS ARE FACING;
 @ TO FORMULATE THE PERFECT
MARKETING MIX TO SOLVE
CONSUMER’S PROBLEM
PROBLEM RECOGNITION

 @ TO AID CONSUMER’S IN
RECOGNIZING PROBLEMS &
 @ TO SUPRESS PROBLEM
RECOGNITION
PROBLEM RECOGNITION

 @ IDENTIFYING CONSUMER’S
PROBLEM:-
 MARKETERS TRY TO IDENTIFY
CONSUMER PROBLEMS,EITHER BY
INTUTION OR THROUGH CONSUMER
RESEARCH.
PROBLEM RECOGNITION

 THE MAIN PITFALL OF WORKING
WITH INTUTION IS THAT THE
PROBLEM MAY BE OF LESS
IMPORTANCE TO MAJORITY OF
CONSUMERS.
PROBLEM RECOGNITION

 CONSUMER RESEARCH,ON THE
OTHER HAND,IS A MORE RELIABLE
TOOL TO IDENTIFY CONSUMER’S
PROBLEM.
 USUALLY,THE FOCUS OF CONSUMER
RESEARCH IS TO FIND OUT THE
ACTIVE & INACTIVE PROBLEMS OF
THE CONSUMERS.
PROBLEM RECOGNITION

 CONSUMER RESEARCH
IS,THUS,USED FOR:-
 * ACTIVITY ANALYSIS,
 * PRODUCT ANALYSIS, &
 * PROBLEM ANALYSIS.
PROBLEM RECOGNITION
 * ACTIVITY ANALYSIS:-
 IS DONE TO STUDY THE PROBLEMS FACED
BY CONSUMERS WHILE PERFORMING
CERTAIN TASKS
LIKE,SAY,COOKING,CLEANING,GAR-
DENING etc.
 THE FOCUS HERE IS ON UNDERSTANDING
THE PROBLEM vis-a vis THESE ACTIVITIES.
PROBLEM RECOGNITION

 * PRODUCT ANALYSIS:-
 HERE THE FOCUS IS ON A
PARTICULAR PRODUCT OR A BRAND.
 FOR Eg INDIAN CONSUMERS FOUND A
MICROWAVE OVEN DIFFICULT TO
USE & WAS PERCEIVED ONLY AS
‘HEATING DEVICE’
PROBLEM RECOGNITION

 LG ELECTRONICS IDENTIFIED THIS
CONSUMER PROBLEM & UNDER
TOOK A DIRECT INITIATIVE WITH A
SPECIAL CAMPAIGN ON HOME
DEMONSTRATION.
PROBLEM RECOGNITION

 * PROBLEM ANALYSIS:-
 IN THIS METHOD,VARIOUS
PROBLEMS ARE STATED AND
RESPONDENTS ARE ASKED TO
STATE THE
ACTIVITIES,PRODUCTS,OR BRANDS
THEY ASSOCIATE WITH THE
PROBLEM
PROBLEM RECOGNITION
 ACTING ON CONSUMER PROBLEMS:-
 WHEN MARKETERS ARE UNAWARE OF
THE CONSUMER’S ISSUE,THEY CAN USE
THIS KNOWLEDGE TO EITHER MODIFY
THEIR EXISTING OFFERINGS OR TO
DEVELOP A COMPLETELY NEW
PRODUCT(ATMs,CREDIT CARDS)
PROBLEM RECOGNITION

 HELP CONSUMER RECOGNIZE
PROBLEM:-
 MARKETERS OFTEN ATTEMPT TO
MAKE CONSUMERS RECOGNIZE
THEIR PROBLEMS’ESPECIALLY IN
THE CASE OF INACTIVE PROBLEMS.
PROBLEM RECOGNITION

 GOVERNMENT BODIES ACTIVELY
USE VARIOUS CAMPAIGNS TO BRING
VARIOUS ISSUES TO CONSUMER’S
ATTENTION AND CAUSE PROBLEM
RECOGNITION.
PROBLEM RECOGNITION

 SUPRESSING PROBLEM
RECOGNITION:-
 IN SOME SCENARIOS,MARKETERS
TRY TO DOWNPLAY THE ILL
EFFECTS OF THEIR PRODUCTS BY
NOT GIVING PROPER INFORMATION
(tobacco,cigarette,alcohol marketers)
INFORMATION SEARCH

 WE STUDIED VARIOUS TYPES OF
‘CDM’ & THE INTERNAL &
EXTERNAL INFORMATION WHICH
THEY REFER TO ,WHILE MAKING
THESE DECISIONS.
INFORMATION SEARCH

 CONSUMERS INITIALLY GO
THROUGH THEIR INTERNAL
INFORMATION RESOURCES & TRY
TO IDENTIFY IF SUCH A PROBLEM
OCCURRED EARLIER & IF IT HAD
OCCURRED,HOW THEY SOLVED THE
ISSUE.
INFORMATION SEARCH

 IF THE INTERNAL INFORMATION IS
NOT SUFFICIENT TO SOLVE THE
PROBLEM,THE CONSUMERS SEARCH
EXTERNAL INFORMATION SOURCES
FOR A POSSIBLE ALTERNATIVE.
INFORMATION SEARCH

 A PERSON,WHOES CAR HAS A
ENGINE FAILURE,WILL FIRST
SEARCH FROM HIS MEMORY & PAST
EXPERIENCE(as to what he did last time?
is it the same problem? which work shop?).
 IF THE INTERNAL INFO SEARCH
DOES’T YIELD ANY SOLUTION,ONLY
THEN GOES FOR YELLOW PAGES etc
DETERMINANTS OF ‘IS’

 # MARKET
CHARACTERISTICS( number of
alternative products,brands,price etc).
 PRODUCT CHARACTERISTIC(various
product attributes,say,fragrance,shape of the
bottle,longevity of the frargrance on skin &
price are some characteristics considered
while purchasing a perfume)
DETERMINANTS OF ‘IS’

 CONSUMER CHARACTERISTICS( level
of market,product,brand knowledg-
e,personal experience,social status etc).
 SITUATION CHARACTERISTICS(norm-
al consumption,gifting,special occasions
etc).
DETERMINANTS OF ‘IS’
 ALL THESE FACTORS TOGETHER
DETERMINE THE EXTENT OF THE
EXTERNAL ‘IS’.
 AN INFREQUENTLY PURCHASED
PRODUCT(house)WITH HIGH PRICE & LONG
LIFE WILL ENTAIL A CONSIDERABLE
AMOUNT OF EXTERNAL SEARCH FOR,A
FIRST TIME BUYER
DETERMINANTS OF ‘IS’

 ON THE OTHER HAND,A PERSON
WHO FREQUENTLY INVESTS IN
RESIDENTIAL PROPERTY TO MAKE A
PROFIT OUT OF A RESALE MAY NOT
INDULDE IN TOO MUCH EXTERNAL
INFORMATION.
ALTERNATIVE
EVALUATION & SELECTION
 WE DISCUSSED HOW CONSUMERS
FIRST RECOGNIZE A PROBLEM,
ADDRESS THE ISSUE,HOW THEY
SEARCH FOR INFORMATION.
 ON THE BASIS OF THIS,THEY
SHORTLIST VARIOUS
ALTERNATIVES FOR THE FINAL
PURCHASE.
ALTERNATIVE
EVALUATION & SELECTION
 THERE ARE THREE TYPES OF
CONSUMER’S CHOICE PROCESS:
 # AFFECTIVE CHOICE,
 # ATTITUDE BASED CHOICE, &
 # ATTRIBUTE BASED CHOICE.
AFFECTIVE CHOICE

 CONSUMER BUYING STEREO AT
ELECTRONIC SHOP—INSPECTS ALL
MODELS & BRANDS– COMPARES SET
RECEPTION—VOLUME—EQUILIZER-
REMOTE CONTROL—RECORDING
OPTIONS—PRICE—OTHER FEATURES
 EVALUATES ALL MODELS BASED ON
THESE ASPECTS—SELECTS ONE SET-
ATTITUDE BASED
CHOICE
 INVOLVES THE USE OF GENERAL
ATTITUDES,SUMMARY
IMPRESSIONS,INTUTIONS etc.
ATTRIBUTE BASED
CHOICE
 REQUIRES THE KNOWLEDGE OF
SPECIFIC ATTRIBUTES,AT THE TIME
THE CHOICE IS MADE & IT INVOLVES
ATTRIBUTE-BY-ATTRIBUTE
COMPARISON ACROSS BRANDS ARE
MADE AT THE TIME OF CHOICE
ATTRIBUTE BASED
CHOICE
 A-B-C REQUIRE THE COMPARISON
OF EACH SPECIFIC ATTRIBUTE
ACROSS ALL THE BRANDS
CONSIDERED
CULTURAL INFLUENCES

 ON NOV 10,2003,THE BRITISH
PM,TONY BLAIR,CREATED HISTORY
WHEN HE,ALONG WITH SEVERAL
MINISTERS &MEMBERS OF OTHER
POLITICAL PARTIES,CELEBRATED
THE FESTIVAL ‘DIWALI’ IN THE
BRITISH PARLIAMENT.
CULTURAL INFLUENCES

 AMIDIST THE CHEERING OF 500
INDIANS THE BRITISH PM, LIT THE
‘DIWALI LAMP’ TO FORMALLY
INAUGURATE THE CELEBRATION.
 INDIANS HAVE IMMIGRATED TO
VARIOUS PARTS OF THE WORLD &
HAVE TAKEN WITH THEM A SLICE
OF THEIR CULTURAL HERITAGE.
CULTURAL INFLUENCES

 THE CULTURE HAS A GREAT DEAL
OF INFLUENCE ON INDIVIDUALS ON
ALL WALKS OF LIFE.
CULTURE

 DEFINED AS “ THE TOTALITY OF
SOCIALLY TRANSMITTED
BEHAVIOUR
PATTERNS,ARTS,BELIEFS,INSTITUT-
IONS & ALL OVER PRODUCTS OF
HUMAN WORK & THOUGHT”
CULTURE
 IT HAS ALSO BEEN DEFINED AS “SHARED
BEHAVIOUR,WHICH IS IMPORTANT
BECAUSE IT SYSTEMATIZES THE WAY
PEOPLE DO THINGS,THUS AVOIDING
CONFUSION & ALLOWING CO-
OPERATION SO THAT GROUPS OF
PEOPLE CAN ACCOMPLISH WHAT NO
SINGLE INDIVIDUAL COULD DO ALONE.
CULTURE
 AND IT IS BEHAVIOUR IMPOSED,BY
SANCTIONS,REWARDS AND PUNISHMENTS
FOR THOSE WHO ARE PART OF THE
GROUP”.
 IN OTHER WORDS,CULTURE CONSISTS OF
THE COLLECTIVE
BEHAVIOUR,BELIEFS,VALUES,HABI-
TS,TRADITION & HERITAGE OF A SOCIETY
CULTURE

 IT INFLUENCES-WHAT ONE
EATS,DRINKS,WEARS;THE KIND OF
MUSIC,ART,CRAFT,MOVIES,ENTERT-
AINMENT;THE LANGUAGE ONE
SPEAKS;THE WORK PATTERNS—
PRACTICALLY ALL ASPECTS OF
ONE’S LIFE.
CULTURE
 THE CULTURAL VALUE SYSTEM
INFLUENCES 3 ESSENTIAL
CONSTRUCTS OF HUMAN
BEHAVIOUR.
 *ETHICS(good,bad,moral,immoral)
 *AESTHETICS(beautiful,ugly,pleasant,un-
pleasant)
 * DOCTRINE(political,social etc)
CULTURE
 VALUES INDEPENDENT OF OBJECTS OR
SITUATIONS,ARE WIDELY ACCEPTED BY A
SOCIETY & ARE VERY DIFFICULT TO
CHANGE.
 CUSTOMES ON THE OTHER HAND ARE
“OVERT MODES OF BEHAVIOUR THAT
CONSTITUTE CULTURALLY APPROVED OR
ACCEPTABLE WAY OF BEHAVING IN A
SPECIFIC SITUATION.
THE DYNAMICS OF
CULTURE
 CULTURE IS OMNIPRESENT,IT
SATISFIES THE NEEDS OF PEOPLE.
 IT IS LEARNED THROUGH
SOCIALIZATION.
 IT IS A SHARED GROUP
PHENOMENON.
 IT IS DYNAMIC IN NATURE.
THE DYNAMICS OF
CULTURE
 # OMNIPRESENT CULTURE:-
 CULTURE HAS AN IMPACT ON ALL
ASPECTS OF LIFE.
 EVEN EVERYDAY THINGS
LIKE,PRAYING BEFORE VENTURING
OUT OF HOME & HAVING FAMILY
DINNERS ARE INFLUENCED BY
CULTURE.
THE DYNAMICS OF
CULTURE
 # SATISFIES CHANGING NEEDS:-
 SERVES AS A GUIDE TO SATISFY
PHYSIOLOGICAL,PERSONAL &
SOCIAL NEEDS.
 IT PROVIDES CERTAIN STANDARDS
THAT PEOPLE FOLLOW BECAUSE
THEY ARE SUPPOSED TO BE FOR
THEIR WELFARE.
THE DYNAMICS OF
CULTURE
 ACTS AS A GUIDE TO HOW PEOPLE
SHOULD BEHAVE IN DIFFERENT
SITUATIONS.
 IT NOT ONLY SERVES PRESENT
NEEDS BUT ALSO CHANGES ALONG
WITH CHANGING TIMES.
 ALERT MARKERS WITH NEW
OPPORTUNITIES.(nuclear families)
THE DYNAMICS OF
CULTURE
 # CULTURE IS LEARNED:-
 ARE LEARNED EITHER
FORMALLY(from family) OR
INFORMALLY(by observing).
 CULTURE VARIABLES CAN ALSO BE
TAUGHT BY TEACHERS.
THE DYNAMICS OF
CULTURE
 CULTURAL MEANING,IN THE
CONTEXT OF CONSUMER
BEHAVIOUR,IS BELIEVED TO BE
PRESENT IN TODAY’S EVER
CHANGING MARKKETING
SCENARIO.
THE DYNAMICS OF
CULTURE
 EVERY CULTURE HAS ITS OWN
BELIEFS,VALUES & CUSTOMS & ITS
OWN PERSPECTIVE.
 IT IS THE LENS THROUGH WHICH ITS
MEMBERS SEE THE WORLD.
THE DYNAMICS OF
CULTURE
 CULTURE THUS CONSTITUTES THE
WHOLE WORLD FOR ITS MEMBERS,A
WORLD IN WHICH EVERYTHING
MAKES SENSE.
 ANYTHING OUTSIDE IT IS
CONSIDERED ALIEN.
THE DYNAMICS OF
CULTURE
 # LANGUAGES & SYMBOLS:-
 MARKETERS USE VERBAL & NON-VERBAL
MEANS OF COMMUNICATION TO
ADVERTISE,TO TARGET CONSUMER BASE.
 LANGUAGE IS A BASIC MEANS OF
COMMUNICATION BETWEEN
INDIVIDUALS,HENCE IT IS ESSENTIAL TO
TRANSMIT CULTURAL UNDERSTANDING
AMONG MEMBERS OF A CULTURE.
MEASURING CULTURE
 THERE ARE 3 TOOLS,WHICH
WESTERN COUNTRIES USE MOST
FREQUENTLY TO MEASURE
CULTURE i.e,
 * CONTENT ANALYSIS,
 * CONSUMER FIELD WORK &
 * VALUE MEASUREMENT SURVEY
INSTRUMENTS.
MEASURING CULTURE

 * CONTENT ANALYSIS:-
 IS AN OBJECTIVE APPROACH TO
ANALYSE THE CULTURAL CONTENT
OF ALL KINDS OF VERBAL,WRITTEN
& PICTORAL COMMUNICATION IN A
SOCIETY.
MEASURING CULTURE

 THE UNDERLYING PRINCIPLE IS
THAT THE COMMUNICATION IS
REFLECTIVE OF THE CULTURAL
VALUES & WAYS OF LIFE OF
SOCIETY.
MEASURING CULTURE

 IT ALSO IS QUITE AN EFFECTIVE
TOOL TO MEASURE THE CULTURAL
SHIFTS.
 FAIR&LOVELY(HLL),LANDED IN A
CONTRAVERSY OVER A TELEVISION
ADVERTISEMENT,WHICH ACTIVISTS
CLAIMED,SHOWED WOMEN IN POOR
LIGHT.
MEASURING CULTURE

 BOTH MARKETERS & POLICY
MAKERS USE CONTENT ANALYSIS
TO UNDERSTAND CULTURAL SHIFTS.
MEASURING CULTURE

 WHILE MARKETERS USE IT TO
UNDERSTAND THE EFFECT OF
CULTURAL SHIFT ON CONSUMPTION
PATTERN,POLICY MAKERS USE IT TO
UNDERSTAND CULTURAL SHIFT SO
THAT THEY CAN MAKE CHANGES IN
OLD LAWS & GOVERNMENT
POLICIES
MEASURING CULTURE

 CONSUMER FIELD WORK:-
 INVOLVES QUALITATIVE &
QUANTITATIVE TECHNIQUES OF ‘CR’
TO UNDERSTAND THE INFLUENCE
OF THEIR CULTURE ON THEIR
BEHAVIOUR & ITS SUBSEQUENT
EFFECT ON THEIR CONSUMPTION
PATTERN.
MEASURING CULTURE
 RESEARCHERS USE VARIOUS METHODS
INVOLVING SOME SUBJECTS LIKE
OBSERVATION(participative&non-
participative),FOCUS GROUPS & IN-DEPTH
INTERVIEWS,TO NOT ONLY UNDERSTAND
CONSUMPTION IN THE CULTURAL
CONTEXT BUT ALSO TO IDENTIFY
EMERGING CULTURAL SHIFTS
MEASURING CULTURE

 VALUE MEASUREMENT & SURVEY
INSTRUMENTS:-
 THERE ARE 3 METHODS THAT USE
SOME RELEVANT WORDS &
STATEMENTS TO MEASURE
CULTURAL VALUES OF A SOCIETY.
 THESE ARE;
MEASURING CULTURE

 ! ROKEACH VALUE SURVEY,
 !! LIST OF VALUES (LOV) &
 !!! VALUES & LIFESTYLE SURVEY
(VALS)
MEASURING CULTURE

 ! THE ROKEACH VALUE SURVEY:-
MOST FREQUENTLY USED METHOD
OF MEASURING CULTURAL VALUES.
 CONSIST OF TWO DIFFERENT BUT
RELATED SETS OF VALUES-
INSTRUMENTAL VALUES &
TERMINAL VALUES.
MEASURING CULTURE

 EACH OF THESE SETS DESCRIBES 18
VALUES,WHICH THE RESPONDENT
HAS TO RANK ACCORDINGLY.
 THIS TYPE WAS INITIALLY USED TO
EXPLAIN THE VALUE STRUCTURE OF
A SOCIETY OR THE DIFFERENCE IN
THE VALUE STRUCTURE OF
DIFFERENT CULTURAL GROUPS.
MEASURING CULTURE

 ROKEACH VALUE SURVEY IS QUITE
DIFFICULT TO USE DUE TO LARGE
NUMBER OF VALUES,WHICH HAS TO
BE RANKED.
 BESIDES,NOT ALL RESEACHERS
AGREE THAT THE VALUES PUT IN
UNDER BOTH CATEGORIES ARE
IMPORTANT.
MEASURING CULTURE

 THERE IS ALSO DISAGREEMENT
AMONG RESEARCHERS ON THE
INTERPRETATION OF
INSTRUMENTAL & TERMINAL
VALUES & THEIR CLASSIFICATION
UNDER EACH HEAD.
MEASURING CULTURE

 THE LIST OF VALUES METHOD IS
QUITE SIMILAR TO THE ROKEACH
VALUE SURVEY & CAME INTO
EXISTENCE TO OVERCOME THE
LATTER’S SHORTCOMING OF SO
MANY VALUES HAVING TO BE
RANKED.
MEASURING CULTURE

 IN THE LOV METHOD,THE TERMINAL
VALUES HAVE BEEN CONVERTED TO
A NINE-ITEM SUBSET,RESPONDENTS
ARE ASKED TO IDENTIFY THE TWO
MOST IMPORTANT VALUES.
MEASURING CULTURE

 THE VALUES & LIFESTYLE METHOD
IS BASED ON NEED HIERARCHY &
THE SOCIAL CHARACTER CONCEPT.
 IT CONSIST OF 32-36 QUESTIONS
RELATING TO THE GENERAL &
SPECIFIC ATTITUDES OF
RESPONDENTS & THEIR
DEMOGRAPHIC PROFILE.
MEASURING CULTURE

 THE RESPONDENTS ARE THEN
CLASSIFIED INTO ONE OF THE NINE
LIFESTYLE GROUPS ON THE BASIS
OF THEIR RESPONSES.
SUB-CULTURE

 A SOCIETY WITH COMMON CULTURE
CAN BE SUB-DIVEDED ON THE BASIS
OF SOCIO-CULTURAL & DEMOGRAP-
HIC VARIABLES,INTO VARIOUS
GROUPINGS CALLED AS SUB-
CULTURES.
SUB-CULTURE

 CULTURE IS,THUS,RELATED TO THE
DOMINANT CULTURAL
BELIEFS,VALUES & CUSTOMS OF A
SOCIETY,IRRESPECTIVE OF THE
DIFFERENT TRAITS OF THE MULTIP-
LE SUB-CULTURES WITHIN THAT
CULTURE.
SUB-CULTURE

 A SUB-CULTURE,ON THE OTHER
HAND,IS “A SOCIAL GROUP WITHIN
A NATIONAL CULTURE THAT HAS A
DISTINCTIVE PATTERNS OF
BEHAVIOR & BELIEFS.”
SUB-CULTURE
 A CUSTOMER CAN BE A MEMBER OF
MANY SUB-CULTURES AT THE SAME
TIME.
 FOR Eg,AN ADULT(age sub-culture) INDIAN
CHRISTIAN(relegion sub-culture) MALE(gender
sub-culture) LIVING IN SOUTH
INDIA(geographic s-c) & WORKING AS AN
ENGINEER(occupational s-c)
CROSS CULTURAL
INFLUENCES
 THE REMOVAL OF TRADE BARRIERS
& INTERNATIONAL COMMITMENT
TO FREE TRADE HAS LED TO THE
OPENING UP OF VARIOUS
CONSERVATIVE WORLD ECONOMIES
CROSS CULTURAL
INFLUENCES
 AS A RESULT,THE NUMBER OF MNCs
HAS BEEN INCREASING THE WORLD
OVER.
 IN INDIA TOO,SINCE 2 DECADES THE
PRESENCE OF FOREIGN BRANDS
INCREASED SIGNIFICANTLY.
CROSS CULTURAL
INFLUENCES
 THIS HAS MEANT INCREASED
CHOICE FOR THE INDIAN CONSUMER
 THUS INSTEAD OF JUST,HMT& TITAN
INDIAN CONSUMERS CAN NOW
CHOOSE FROM A RANGE OF
OMEGA,SEIKO,CITIZEN etc.
 THE SAME IS TRUE FOR OTHER
PRODUCTS ALSO.
CONSUMER
ETHENOCENTRISM
 ETHENOCENTRISM MEANS “PEOPLE
VIEWING THEIR OWN IN-GROUP AS
CENTRAL,AS POSSESSING PROPER
STANDARDS OF BEHAVIOUR,AND AS
OFFERING PROTECTION AGAINST
APPARENT THREATS FROM OUT
GROUPS”
CONSUMER
ETHENOCENTRISM
 HAS BEEN DEFINED AS “THE APPRO-
PRIATENESS,INDEED MORALITY OF
PURCHASING FOREIGN MADE
GOODS”
CROSS-CULTURAL
MARKRTING MISTAKES
 MARKETERS OFTEN FAIL TO
EMPLOY THE PROPER STRATEGY IN
DIFFERENT NATIONS,BEFORE THEY
LAUNCH THEIR PRODUCT.
 BRAND FAILURES OR PROBLEMS
DUE TO CULTURAL
MISINTERTATION ARE NUMEROUS.
CROSS-CULTURAL
MARKRTING MISTAKES
 PRODUCT PROBLEMS(Hallmark failed
miserably in France—French preffered to
write their own messages in the greeting
cards)
 PROMOTIONAL PROBLEMS(KFC in
India failed to attract families as Indians
perceived it as a fast-food—Indian food
habits)
CROSS-CULTURAL
MARKRTING MISTAKES
 PRICING PROBLEM(Maggie noodles
initially failed to cut ice in India due to
prices which the target consumers perceived
as not having value-for-money).
CONSUMER PROTECTION
 GOI,RECOGNIZES A CONSUMER UNDER
THE ‘CONSUMER PROTECTION ACT’:- AS
ANY PERSON WHO “BUYS ANY GOODS
FOR A CONSIDERATION WHICH HAS BEEN
PAID OR PROMISED OR PARTLY PAID AND
PARTLY PROMISED,OR UNDER ANY
SYSTEM OF DEFFERED PAYMENT AND
INCLUDES ANY USER OF SUCH GOODS--
CONSUMER PROTECTION
 --OTHER THAN THE PERSON WHO BUYS SUCH
GOODS FOR CONSIDERATION PAID OR
PROMISED OR PARTLY PAID OR PARTLY
PROMISED,OR ANY SYSTEM OF DEFFERED
PAYMENT WHEN SUCH USE IS MADE WITH
THE APPROVAL OF SUCH PERSON,BUT DOES
NOT INCLUDE A PERSON WHO OBTAIN SUCH
GOODS FOR RESALE OR FOR ANY
COMMERCIAL PURPOSE.
CONSUMER PROTECTION

 THE DEFINITION OF CONSUMER
ALSO INCLUDED PEOPLE WHO HIRE
GOODS AND SERVICES.
CONSUMER PROTECTION
 U.S.PRESIDENT,JOHN.F.KENNEDY IN
HIS ADDRESS TO THE US CONGRESS
IN 1962,SAID, “If a consumer is offered
inferior products,if prices are exorbitant,if
druges un safe or worthless,if the consumer
is unable to choose on an informed
basis,then his dollar is wasted,his wealth &
safety may be threatened & national interest
suffers.
CONSUMER PROTECTION

 THE CONSUMER RIGHTS,AS
RECOGNIZED BY GOI,ARE
 @ RIGHT TO SAFETY(goods&services
should consider short & long-term safety of
the consumers)
 @ RIGHT TO BE INFORMED(to avoid
being cheat)
CONSUMER PROTECTION
 @ RIGHT TO CHOOSE(to have access to a
variety of options at competitive prices)
 @ RIGHT TO BE HEARD(to have liberty to
complain)
 @ RIGHT TO SEEK REDRESS(to fight
consumer exploitation & unfare trade practices)
 RIGHT TO CONSUMER EDUCATION(to be
aware of his/her rights)
CONSUMER PROTECTION

 GOI HAS ENFORCED MANY ACTS TO
PROTECT THE INTERESTS OF
CONSUMERS.
 SOME OF THE IMPORTANT ACTS
RELATED TO CONSUMER WELFARE
ARE AS FOLLOWS.
CONSUMER PROTECTION

 COPRA 1986,UNDER THIS
ACT,CONSUMERS CAN SEEK
REDRESS WITH REFERENCE TO
UNFAIR TRADE PRACTICES & OR
DEFECT AND DEFICIENCIES IN THE
GOODS & SERVICES PURCHASED
CONSUMER PROTECTION

 BUREAU OF INDIAN STANDARDS
ACT (BIS),1986:
 PRODUCT CERTIFICATION WHICH
INCLUDES POPULAR QUALITY
ASSURANCE LIKE Agmark,ISI,Hologram
etc.
CONSUMER PROTECTION

 ESSENTIAL COMMODITY ACT,1955:
 THE GOVT HAS COMPLETE CONTROL
OVER THE PRODUCTION &
DISTRIBUTION OF SOME ESSENTIAL
GOODS & SERVICES AT REASONBLE
PRICES.
CONSUMER PROTECTION

 THE STANDARDS OF WEIGHTS &
MEASURES ACT,1976:
 UNDER THE PACKAGED
COMMODITIES RULE,1977, THE ACT
PROVIDES GIUDELINES FOR GIVING
COMPLETE INFORMATION ABOUT
THE PRODUCT ON THE PACKAGING
TO CONSUMERS