You are on page 1of 132


Individual Influences on Consumer Behavior

A) Motivation and Motivation Theory
B) Personality
C) Perception
• Consumer Motivation
Motivation is an inner drive that reflects goal-
directed arousal.
• In a consumer behavior context, the results is
a desire for a product, service, or experience.

It is the drive to satisfy needs and wants, both
physiological and psychological, through the
purchase and use of products and services
Needs :
• Needs are the essence of the marketing concept.
• Marketers do not create needs but can make consumers aware
of needs.
• A need is something that is necessary for humans to live a
healthy life.
• Needs are distinguished from wants because a deficiency would
cause a clear negative outcome, such as dysfunction or death.
• Needs can be objective and physical, such as food and water, or
they can be subjective and psychological, such as the need for
• On a societal level, needs are sometimes controversial, such as
the need for a nationalized health care system.
• Understanding needs and wants is an issue in the fields of
politics, social science, and philosophy.
Types of Needs

1. Innate Needs: Physiological (or biogenic)

needs that are considered primary needs or
2. Acquired Needs: Learned in response to our
culture or environment. Are generally
psychological and considered secondary needs
• Goals :
• A goal or objective is a projected state of affairs
that a person or a system plans or intends to
achieve—a personal or organizational desired end-
point in some sort of assumed development. It is
the sought-after results of motivated behavior.
• Types of goals:
• · Generic goals: are general categories of goals
that consumers see as a way to fulfill their needs
• · Product-specific goals: Are specifically
branded products or services that consumers
select as their goals
• Positive and negative motivation:

• Positive motivation is a response which includes enjoyment and optimism about the 
tasks that you are involved in. Positive motivation induces people to do work in the best 
possible manner and to improve their performance. Under this better facilities and 
rewards are provided for their better performance. Such rewards and facilities may be 
financial and non-financial.

• Negative motivation aims at controlling the negative efforts of the work and seeks to 
create a sense of fear for the worker, which he has to suffer for lack of good 
performance. It is based on the concept that if a worker fails in achieving the desired 
results, he should be punished. Negative motivation involves undertaking tasks because 
there will be undesirable outcomes, eg. failing a subject, if tasks are not completed.
• Almost all students will experience positive and negative motivation, as well as loss of 
motivation, at different times during their life at University.
• Both positive and negative motivation aim at inspiring the will of the people to work but 
they differ in their approaches.
•  Whereas one approaches the people to work in the best possible manner providing 
better monetary and non-monetary incentives, the other tries to induce the man by 
cutting their wages and other facilities and amenities on the belief that man works out of 
• Rational versus Emotional Motives

1. Rationality implies that consumers select goals based on totally objective

criteria such as size, weight, price, or miles per gallon. A conscious, logical reason
for a purchase. A motive that can be defended by reasoning or logical argument
2. Emotional motives imply the selection of goals according to personal or
subjective criteria. A feeling experienced by a customer through association with
a product.

The Dynamic Nature of Motivation

1. Needs are never fully satisfied
2. New needs emerge as old needs are satisfied
3. People who achieve their goals set new and higher goals for themselves
The Selection of Goals

• The goals selected by an individual depend

on their:
– Personal experiences
– Physical capacity
– Prevailing cultural norms and values
– Goal’s accessibility in the physical and social
Goals by
Subscribing to
a Magazine
Motivations and Goals

• Positive Motivation • Negative Motivation

– A driving force – A driving force away
toward some from some object or
object or condition condition
• Approach Goal • Avoidance Goal
– A positive goal – A negative goal from
toward which which behavior is
behavior is directed away
Rational Versus Emotional Motives

• Rationality implies that consumers select

goals based on totally objective criteria
such as size, weight, price, or miles per
• Emotional motives imply the selection of
goals according to personal or subjective
Failure to achieve a
goal may result in
frustration. Some
Frustration adapt; others adopt
defense mechanisms
to protect their ego.
Methods by which
people mentally
Defense redefine frustrating
Mechanism situations to protect
their self-images and
their self-esteem.
Model of the Motivation Process
• The motivational process is the steps that you take to get
• It is a process, that when followed produces incredible results.
• It is amazing what you can do if you are properly motivated,
and getting properly motivated is a matter of following the
motivational process.
• Like any other process it takes a little work and foresight and
planning on your part.
• However, the return on your investment of time is significant,
and it is important when needing extra motivation that you
apply the motivational process.
• In the initiation a person starts feeling lacknesses. 
• There is an arousal of need so urgent, that the bearer has to 
venture in search to satisfy it. 
• This leads to creation of tension, which urges the person to 
forget everything else and cater to the aroused need first.
•  This tension also creates drives and attitudes regarding the 
type of satisfaction that is desired. 
• This leads a person to venture into the search of information. 
• This ultimately leads to evaluation of alternatives where the 
best alternative is chosen. After choosing the alternative, an 
action is taken.
•  Because of the performance of the activity satisfaction is 
achieved which than relieves the tension in the individual.
• Arousal of Motives:
• The arousal of any particular set of needs at a
specific moment in time may be caused by
internal stimuli found in the individual’s
physiological condition , by emotional or cognitive
processes or by stimuli in outside environment.
1. Physiological arousal
2. Emotional arousal
3. Cognitive arousal
4. Environmental arousal
1. Physiological Arousal -Bodily needs at any one
specific moment in time are based on the
individual physiological condition at the moment.
Ex..A drop in blood sugar level or stomach
contractions will trigger awareness of a hunger
Ex..A decrease in body temperature will induce
shivering,which makes individual aware of the
need for warmth this type of thing, they arouse
related needs that cause uncomfortable tensions
until they are satisfied.
Ex..Medicine, low fat and diet
2. Emotional Arousal :Sometime daydreaming
results in the arousal (autistic thinking) or
stimulation of latent needs.
People who are board or who are frustrated in
trying to achieve their goals or often engage
in daydreaming, in which they imagine
themselves in all sorts of desirable situations.
Ex..A young woman who may spend her free
time in internet single chat room.
3. Cognitive arousal Sometime random thoughts
can lead to a cognitive awareness of needs .
An advertisement that provides reminders of
home might trigger instant yearning to speak
with ones parents.
4. Environment arousal -The set of needs an
individual experiences at particular time are often
activated by specific cues in the environment.
b. Without these cues the needs might remain

Ex : The 8’o clock news, the sight or smell of bakery

goods, fast food commercials on television, all these
may arouse the need for food

Ex..New cell phone model display in the store

• Philosophies Concerned with Arousal of Motives
• Behaviorist School
• Behavior is response to stimulus
• Elements of conscious thoughts are to be ignored
• Consumer does not act, but reacts
• Cognitive School
• Behavior is directed at goal achievement
• Needs and past experiences are reasoned,
categorized, and transformed into attitudes and
• The Selection of Goals
• The goals selected by an individual depend on
1. Personal experiences
2. Physical capacity
3. Prevailing cultural norms and values
4. Goal’s accessibility in the physical and social
Maslow’s Hierarchy of Needs

Ego Needs
(Prestige, status, self esteem)

Social Needs
(affection, friendship, belonging)

Safety and Security Needs

(Protection, order, stability)

Physiological Needs
(Food, water, air, shelter, sex)
 Abraham Maslow is well renowned for proposing the Hierarchy of
Needs Theory in 1943.
 This theory is a classical depiction of human motivation.
 This theory is based on the assumption that there is a hierarchy of
five needs within each individual.
 The urgency of these needs varies.
These five needs are as follows-
1. Physiological needs- These are the basic needs of air, water, food,
clothing and shelter. In other words, physiological needs are the
needs for basic amenities of life.
2. Safety needs- Safety needs include physical, environmental and
emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security,
3. Social needs- Social needs include the need for love, affection, care,
belongingness, and friendship.
4. Esteem needs- Esteem needs are of two types: internal
esteem needs (self- respect, confidence, competence,
achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).
5. Self-actualization need- This include the urge to
become what you are capable of becoming / what you
have the potential to become. It includes the need for
growth and self-contentment. It also includes desire
for gaining more knowledge, social- service, creativity
and being aesthetic. The self- actualization needs are
never fully satiable. As an individual grows
psychologically, opportunities keep cropping up to
continue growing.
• McGuire first divided the motivation into two main
categories using two criteria:
• Is the mode of motivation cognitive or affective?
• Is the motive focused on preservation of the
status quo or on growth?
• Then for each division in each category he stated
there is two more basic elements.
• Is this behavior actively initiated or in response to the
• Does this behavior help the individual achieve a new
internal or a new external relationship to the
• Mcguire developed a classification system that organizes these various theories 
into 16 categories. 
• Helps marketers isolate motives likely to be involved in various consumption 
• Divides motivation into four main categories using two criteria

1. Is the mode of motivation cognitive or affective?
2. Is the motive focused on preservation of the status quo or on growth? 

• Cognitive= focus on person’s need for being adaptively oriented toward the 
environment and achieving a sense of meaning 
• Affective= deal with the need to reach satisfying feeling states and to obtain 
personal goals 

• Preservation-oriented= emphasize the individual striving to maintain equilibrium 
• Growth= emphasize development
Further subdivided
• 3. Is this behavior actively initiated or in
response to the environment
• 4. Does this behavior help the individual
achieve a new internal or a new external
relationship to the environment
McGuire’s Psychological Motives
• Classification System with 16 categories
• Two criteria determine 4 major categories:
– Is mode of motivation cognitive or affective?
– Is the motive focused on preservation or
• Four categories subdivided further:
– Is the behavior initiated or a response?
– Is this behavior internal or external?
McGuire’s Cognitive Motives
• Cognitive Preservation Motives
– Need for Consistency (active, internal)
– Need for Attribution (active, external)
– Need to Categorize (passive, internal)
– Need for Objectification (passive, external)
• Cognitive Growth Motives
– Need for Autonomy (active, internal)
– Need for Stimulation (active, external)
– Teleological Need (passive, internal)
– Utilitarian Need (passive, external)
McGuire’s Affective Motives
• Affective Preservation Motives:
– Need for Tension Reduction (active, internal)
– Need for Expression (active, external)
– Need for Ego Defense (passive, internal)
– Need for Reinforcement (passive, external)
• Affective Growth Motives:
– Need for Assertion (active, internal)
– Need for Affiliation (active, external)
– Need for Identification (passive, internal)
– Need for Modeling (passive, external)
• 1. Need for consistency
• People have a basic desire to have all parts of themselves
consistent and they purchase products that fulfill this need.
People that listen to country music will purchase products like
cowboy boots, heavy duty trucks and pets.
• 2. Need for attribute causation
• People have the need to determine who or what causes things
to happen to them. For example, some people choose to
attribute it to themselves, fate or an outside force like God.
• 3. Need to categorize
• Categories allow people to process a large amount of
information. Vehicles are categorized into cars, SUV’s, light
trucks, heavy duty trucks, van, sporty, mid-size, hybrid, electric
and so on. This helps consumers quickly narrow down their
choices when purchasing a vehicle.
• 4. Need for cues
• Most people will view others’ behavior and infer what they feel and
think. Clothing plays an important role in presenting image of a
person. People quickly judge others by the clothing they are wearing
and the vehicle they drive.
• 5. Need for independence
• Americans strive for individuality and self-expression and many
products are marketed as “limited edition” or being different and
• The Japanese culture discourages individuality and focuses on
affiliation, and behavior that enhances family and culture.
• 6. Need for self-expression
• Americans are known for letting others know who and what they are
by their extravagant purchases, especially clothing and cars. Who
really needs a $1,200 pen? What is that saying about that person?
• 7. Need for ego-defense
• The need to defend your identity. An insecure customer
will purchase well-known brand names for fear of being
labeled socially incorrect.
• 8. Need for reinforcement
• People are motivated to act because they are rewarded
for doing it. For example, showing off a new diamond
ring to your friends creates acceptance and approval.
• 9. Need for affiliation
• Affiliation is the need to develop mutually helpful and
satisfying relationships with others, which is a critical
part of all people’s lives.
• 10. Need for modeling
• Conformity and the need to base behavior on that of others. This is the major
motivation of children, tweens (8-12 year olds), and especially teenagers-and in
their social world conformity mean acceptance.

• 11. Need for novelty

• People have variety seeking-behavior and this may be a reason for brand switching
and impulse buys, but that depends on the person. People experiencing rapid life
changes will seek stability, while people in stable life situations will seek change.
The travel industry uses this by changing up their ads and showing adventure
vacations where people are actively having fun and some ads showing relaxing
vacations where people are swinging in a hammock.

• 12. Need for Assertion

• Customer’s need to engage in activities that will increase self-esteem and self-
esteem in the eyes of others. Most consumers respond positively to ads that appeal
to this need. In an advertisement for a ladies razor, it will say “show off your
beautiful legs to your man,” this will appeal to women by showing that the product
increases your self-esteem.
B. Personality
• To understand a buyer needs and convert
them into customers is the main purpose of
the consumer behavior study.
• To understand the buyer habits and his
priorities, it is required to understand and
know the personality of the buyer.
• Personality signifies the inner psychological
characteristics that reflect how a person reacts
to his environment.
• Personality shows the individual choices for
various products and brands.
• It helps the marketers in deciding when and
how to promote the product.
• Personality can be categorized on the basis of
individual traits, likes, dislikes etc.
• Though personality is static, it can change due
to major events such as death, birth or
marriage and can also change gradually with
• By connecting with the personality
characteristics of an individual, a marketer can
conveniently formulate marketing strategies.
Trait Theory
• Traits are the features of an individual or
tendency of an individual in a particular
• Traits help in defining the behavior of
• According to the Trait theorists, an individual’s
personality make-up stems out of the traits
that he possesses, and the identification of
traits is important.
• Following are the few of the most common traits −
• Outgoing
• Sad
• Stable
• Serious
• Happy go lucky
• Relaxed
• Self assured
• Practical
• Imaginative
• Trait theory is representative of multi-personality theories. Trait
theory is based on certain assumptions, such as traits which are
certainly stable in nature and a limited number of traits are
common to most of the people.
• According to the Trait theorists, an individual’s personality make-
up stems out of the traits that he possesses, and the
identification of traits is important. The trait theories can be of
two broad categories, viz., Simple trait theories and general trait
1. Simple Trait Theories
• In simple trait theories, a limited number of traits are identified,
and people are categorized and classified on the basis of these
2. General Trait Theories
• In general trait theories, a large variety of traits are identified.
The Psychoanalytic Theory of Freud
• Sigmund Freud, the father of psychology, became famous with
his psychoanalytic theory of personality. In fact, the theory is
regarded as the cornerstone of modern psychology. Sigmund
based his theory on certain assumptions which is as follows −
• Unconscious needs or drives lie at the heart of human
motivation and personality.
• The socialization process that takes place within people in a
social set up has a huge impact on individual behavior. Freud
explained much of how the psyche or the mind operates, and
proposed that, human psyche is composed of parts within our
awareness and beyond our awareness.
• He said that all behavior within an individual cannot be
explained, much lies in the subconscious.
• Id − According to Freud’s psychoanalytic theory of
personality, the id operates based on the pleasure
principle, which stresses on immediate fulfillment of needs.
The id is the personality component made up of
unconscious psychic energy which satisfies basic urges,
needs, and desires.
• Ego − Ego is that state of awareness which thinks of you as
separate from the other. It always thinks of the glories of
the past and hopes of the future and focuses on guiltiness.
It always thinks of what was and what could be.
• Super Ego − The superego provides guidelines for making
judgments. It is the aspect of personality that holds all our
moral standards and ideals that we acquire from both
parents and society.
Neo-Freudian Theory

• There were a group of psychologists who believed that

social interaction and resultant relationships formed the
basis for the growth and development of personality.
Here, they disagreed with their contemporary, Freud, who
believed that personality was −
• Biological and rooted in genetics, and
• Was groomed as a result of early childhood experiences.
This group of researchers who laid emphasis on the
process of socialization came to be known as the Neo. To
form a personality, social relationships are very important.
• Based on this, consumers are classified into three
personality types −
• Complaint Personalities − They prefer love and
affection and so they move towards them and so they
prefer known brands.
• Aggressive Personalities − They tend to move against
others and they show off their need for power, success
etc which is quite manipulative.
• Detached Personalities − They are not much aware of
brands and are more self reliant and independent.
• Marketers also tend to use Neo-Freudian theories while
segmenting markets and positioning their products.
Personality Concepts in Marketing and
understanding Consumer Diversity
• Personality traits have been found to have an influence
on consumer decision making and consumption patterns.
• The traits that consumers possess, influences their
decision making processes and subsequent consumption
• Consumer behaviorists have identified General and
Consumption specific traits; On the basis of these, they
have been able to usefully formulate and implement
marketing strategies, through first segmenting the
market, target it, positioning their product/service
offering, and designing the marketing mix accordingly.
• Some traits that have been subject to research
are traits like
1. consumer innovativeness
2. consumer susceptibility to interpersonal
influence and
3. consumer ethnocentrism
Consumer Innovativeness
• Innovativeness as a personality trait reflects how well a
person reacts to something that is “new”; this “new”
could be a new product or a brand or even a change in the
marketing mix.
• A marketer needs to assess in its target segment, the
degree of receptivity towards new products and
services/brands or even towards changes made in the
other Ps be it pricing, distribution and/or communication;
the marketer also needs to have an understanding of
consumer segments who would be most receptive to try
out new products and services, so as to assess the target
segments that would be most lucrative;
• this has implications especially in terms of
diffusion and adoption, two important topics in
the study of consumer behavior that shall be
discussed subsequently.
• Thus, a study of consumer innovativeness
becomes important for a marketer.
• Innovativeness gets related to other personality
traits like dogmatism, social character, optimum
stimulation levels and variety novelty seeking.
• The presence/absence of such traits help
differentiate between consumer innovators and
ii) Consumer Susceptibility to Interpersonal
• Susceptibility to interpersonal influence
measures a person’s receptiveness to social
• A marketer needs to understand the how a
consumer segment responds to social
influence and social approval in the purchase
and consumption of goods and services.
• The famous SUSCEP scale, has been designed
to assess consumers’ susceptibility to social
• The scale has been successfully used to
identify differences amongst people with
respect to social influence, and their attitude
towards acceptance/rejection of new products
and services based on social approval.
• People who score high on the scale are high
on self-confidence as opposed to those who
score low on the scale.
• Interpersonal influence can assume three
• viz., information influence, value expressive
influence and utilitarian influence.
• a) Information influence: Inclination of a
consumer to rely on others for information,
and readily accept this information without
thought and deliberation, is referred to as an
information influence.
• The information could pertain to the product
and service offering or the 4 Ps, competitors
• b) Value expressive influence: The person
desires social acceptance by members of the
social class; in order to gain such acceptance
and hold on to it, he decides to behave in a
manner that is similar to them.
• He respects the values, beliefs and notions of
other members of his social class.
• As a consumer, this value expressive influence
would imply that the consumer behaves like
others in his social group, be it family, friends,
peers, reference group, members of the social
class, etc.
• He would patronize product and service
offerings that have social approval, and
behave similar to others in his social group in
terms of purchase decisions and consumption
• He would seek to gain and maintain social
approval and so get influenced by values
expressed by members of his social group.
• c) Utilitarian influence: Under this kind of
influence, a person tries to be conventional; he
agrees to what have to say in order to win a
reward or avoid a punishment.
• In other words, he yields to social pressure, in
order to be benefited like others or escape a
punishment like others.
• As a consumer, he would patronize usage of
product and service offerings or brands that are
rewarding in terms of usage experience provide
value for money and bring satisfaction; he would
avoid brands that others do not buy because they
are not rewarding
Personality traits and their Implications
Personality Trait and Types Relevance/Implications for a
Meaning Marketer

Consumer Innovativeness - -High on Innovativeness: •Innovativeness helps a

measures how open and willing to try out new marketer to: - assess a
receptive a consumer is product/service offerings consumers’ willingness to
towards a new product or and /or brands. innovate. - analyze the degree
service/ brand OR even to of receptivity of segment(s). -
changes made to any or all of identify the most lucrative
the 4 Ps. -Low on Innovativeness: segment(s) for a new
reluctant and unwilling to try product/service. - predict and
out new product/service forecast the rate of diffusion
offerings and /or brands. and adoption of new products
and services.
•An innovator would be
willing to try out new
product/services and would
be receptive to new offerings,
as opposed to a non-
Dogmatism - measures the High dogmatism: when one High dogmatism: -
extent of rigidity within a approaches the new/ Consumers who are high
consumer towards unfamiliar/alien/strange on dogmatism decide to
something that is new, or object defensively and with purchase traditional,
unfamiliar or contrary to great resistance and established and time
established discomfort in thought and tested product/brands; -
preconceptions, ideas and action. They are They tend to become
beliefs “closedminded.” brand loyal. - In order to
Low dogmatism: when one encourage such consumers
approaches and considers to try out new
the new/unfamiliar/alien/ products/brands, the
strange object without any marketer needs to use
resistance and without any authoritative appeals;
discomfort in thought and Credible sources like
action. They are experts/celebrities should
“openminded”. be used.
Low dogmatism: - Consumers who
are low on dogmatism prefer to
test out new products/brands. -
Such consumers tend to be
innovators. - For such consumers,
the marketer should design
advertisements that stress upon
product features, benefits, factual
differences and greater value over
previous product offerings and
Social Character: - reflects the -Inner directness: when a Inner directness: - Such
degree to which a consumer person relies on his “inner, consumers tend to be
relies on self or on others in deep core” values, beliefs and consumer innovators; They
making purchase decisions and standards in evaluating believe in themselves and
forming consumption patterns products and making purchase make their own decisions. -
decisions Marketer should use appeals
that are rational and fact
providing; they should focus
on product benefits, features
and the value addition, leaving
it finally to the consumer to
use his value judgment in
assessing the worth of the
product/service offering.

Other-directness: when a Other-directness: - They tend

consumer relies on others, to be low on innovativeness. -
particularly social influences in They are socially directed. - For
judging the right or wrong. such consumers, the marketer
They look towards others to needs to use a social appeal,
iii) Cognitive factors
Cognitive personality traits have also been studied by
consumer researchers and have been found to have
an impact on consumption behavior.
While many traits have been studied and examined,
two traits in particular, viz., visualizers and verbalizers,
and need for cognition have been found to have a
profound influence on how consumers behave in the
 The traits hold relevance in that they could help the
marketer in designing their communication strategy,
both in terms of media and message strategy.
iv) Consumer Ethnocentrism
• Ethnocentrism is illustrative of a persons’ feeling of patriotism,
and a resultant desire to accept or reject foreign made products
and/or brands.
• As consumers, they feel that it is undesirable and inappropriate
to prefer foreign products over indigenous ones; this could be
one, because of patriotism, and two, because of the impact that
it would have on the socio-cultural fabric and the economy.
• A scale referred to as “CETSCALE” has been developed to
measure the receptivity within consumers towards foreign made
product and service offerings and/or foreign brands.
• This could help a marketer, especially a multi-national, help
assess the consumer segment, in terms of receptivity towards
foreign made products.
Sample Items from the CETSCALE
1. American people should always buy American-made products instead of imports.
2. Only those products that are unavailable in the U.S. should be imported.
3. Buy American-made products. Keep America working.
4. Purchasing foreign-made products is un-American.
5. It is not right to purchase foreign products, because it puts Americans out of jobs.
6. A real American should always buy American-made products.
7. We should purchase products manufactured in America instead of letting other countries
get rich off us.
8. It is always best to purchase American products.
Consumer Cognitive Personality Traits and
their Implications
Consumer Cognitive Types Relevance/Implications for
Personality Traits a Marketer
i) Visualizers and Visualizers: consumers who Visualizers: -As a consumer,
Verbalizers: prefer the visual media or they prefer the TV or
visual information or even would prefer the audio
products that stress the visual CD to provide them
visual. with information, rather
than a book to read. -The
marketer should present
his communication via the
visual media and stress on
pictures, charts, figures
and drawings in order to
create awareness of the
product, the factual details,
features and benefits. The
strategy would attract
attention and seek
retention of information
from visualizers.
-Verbalizers: such Verbalizers: - As a
consumers prefer the consumer they prefer the
written/verbal media or newspaper/ magazine as a
the written/verbal media and would desire
information or even information via a brochure
products that stress the or a book rather than audio
written/verbal. visual CD. - The marketer
should use the print media
or even supplement it with
the verbal to educate
verbalizers about their
product and service
offerings, as also other
information about the 4Ps.
2. ii) Need for cognition -High Need for Cognition: High Need for Cognition:
(NC): those consumers, who are Consumers who are high
high on cognition, are on the NC, prefer a
desirous of information; message that is
they love to think, and information providing,
thus, like to collect gives product/service
information, and related information,
deliberate upon it. It refers arguments and counter-
to their propensity to arguments; in other
gather information and words, they like to process
enjoying thinking information through the
central route to
persuasion; they would
prefer the message
content, rather than the
Low need for Cognition: Low need for Cognition:
such consumers are low in Consumers who are low
need for thought and on the NC, prefer a
deliberation. message that contains fun,
Brand Personality
• Brand personality is the way a brand speaks and behaves.
It means assigning human personality traits/characteristics
to a brand so as to achieve differentiation.
• These characteristics signify brand behaviour through
both individuals representing the brand (i.e. it’s
employees) as well as through advertising, packaging, etc.
• When brand image or brand identity is expressed in terms
of human traits, it is called brand personality.
• For instance - Allen Solley brand speaks the personality
and makes the individual who wears it stand apart from
the crowd. Infosysrepresents uniqueness, value, and
• Brand personality is nothing but personification of
• A brand is expressed either as a personality who
embodies these personality traits
• (For instance - Shahrukh Khan and Airtel, John
Abraham and Castrol) or distinct personality traits.
• (For instance - Dove as honest, feminist and
optimist; Hewlett Packard brand represents
accomplishment, competency and influence).
• Brand personality is the result of all the
consumer’s experiences with the brand. It is
unique and long lasting.
Brand Name
• Brand name is one of the brand elements
which helps the customers to identify and
differentiate one product from another.
• It should be chosen very carefully as it
captures the key theme of a product in an
efficient and economical manner.
• It can easily be noticed and its meaning can be
stored and triggered in the memory instantly.
• Choice of a brand name requires a lot of
research. Brand names are not necessarily
associated with the product.
• For instance, brand names can be based on
places (Air India, British Airways),
• Animals or birds (Dove soap, Puma), people
(Louise Phillips, Allen Solly).
• In some instances, the company name is used
for all products (General Electric, LG).
• Features of a Good Brand Name
A good brand name should have following characteristics:

1. It should be unique / distinctive (for instance- Kodak, Mustang)

2. It should be extendable.
3. It should be easy to pronounce, identified and memorized. (For
4. It should give an idea about product’s qualities and benefits (For
instance- Swift, Quickfix, Lipguard).
5. It should be easily convertible into foreign languages.
6. It should be capable of legal protection and registration.
7. It should suggest product/service category (For instance Newsweek).
8. It should indicate concrete qualities (For instance Firebird).
9. It should not portray bad/wrong meanings in other categories. (For
instance NOVA is a poor name for a car to be sold in Spanish country,
because in Spanish it means “doesn’t go”).
Brand Personality
• Personality-like traits associated with
• Volvo - safety
• Perdue - freshness
• Nike - the athlete
• BMW - performance
• Levi’s 501 - dependable and rugged
• What Leads To Brand Personality?
• Branding Strategies: The name, logo, color,
fonts and other branding strategies affect the
brand personality.
• Marketing Activities: Marketing activities like
taglines, product packaging, and marketing
communication strategies have a huge role in
defining a brand’s personality.
Examples of Brand Personality
• Brand Personality of Woodland
• Woodland got the ruggedness, outdoorsy,
and ready for adventure personality through
its products (hard boots – meant for
adventure) and smart marketing strategies.
• They also used the color green, which
represents nature, to build a personality of
being outdoorsy.
• Brand Personality of Harley Davidson
• Harley Davidson has been a rebel from the
start. The promotional campaigns (naming
motorcycles as mean machines), the logo, and
use of bright and dynamic colors has helped
them build this personality.
• Brand Personality of Marlboro
• Marlboro got a personality of
being tough through its different marketing
strategies, which included ‘The Tattooed Man’,
‘Marlboro Cowboy’, and ‘The Marlboro man’.
• Brand Personality of MTV
• MTV tried to position itself to be different
from usual music videos channel. The concept
of VJ’s followed by cool logos and taglines, like
‘I want my MTV’ & ‘MTV is here’, helped them
stand out.
Psychology of Colors in Marketing and Branding

• Psychology and marketing are lifelong partners.

• A psychologist may not be a marketer but a
good marketer always involve
psychology in his marketing decisions.
• Marketing is no rule of thumb. It involves
intense research on customers’ needs, wants,
likes, preferences, etc.
• One of these psychological researches revealed
the impact of different colors on customers
• Color is involved in every aspect of branding and
• Whether it is your logo, your product label, collaterals, or
advertisements, etc.
• Color is one of the most important aspect which gives
brand a personality and helps in its positioning.
• Color works out as a silent message to the customer.
Customer assumes your business to have certain
characteristics if it has certain color.
• These assumption are not the same for everyone though.
• Everyone has different perceptions for different colors
depending on their personal experience, past,
upbringing, community, religion, etc.
Psychology of Color Red
• Red is a physical color. It creates a rush within the body.
This color makes us stop and look at it.
• Companies in almost every niche use Red in their
marketing activities
• Coca Cola – Coca Cola had to stand out of competition and
hence used red for its branding. Everything was painted red
to differentiate it from others. Red was a perfect color as
Coca Cola was the new excitement when it was launched.
• Funskool, which deals in children toys has its logo colored
red. Spread the Love!
• Red, because of its characteristic of appearing nearer than
it is, is a perfect color to be used for triggers like – Buy Now,
Click Here, etc.
Psychology of Color Blue
• Blue is vast just like the sky. Blue is intellectual
and unlike red, it soothes the mind. Blue is a
true opposite of red. It has a characteristic of
appearing farther than it is.
• Blue is calm. It soothes your mind. It is linked to
consciousness and intellect.
• Just like red, blue is also a versatile color. But it
is most common in Big IT companies.
• Facebook is blue. IBM is the big blue. Samsung,
Hp, dell, etc. everyone has blue in their logos.
Psychology of Color Yellow
• The color of the sun. Yellow means happiness.
Yellow is a powerful color in inducing confidence,
and self-esteem and other positive emotions.
• Yellow has a long wavelength and is seen before any
other color.
• Yellow is also the color of creativeness. Companies
dealing in children products tend to use yellow the
• McDonalds has a yellow colored logo. It shows how
cheerful it is.
• Ferrari shows its racing ‘Sprit’ through its yellow
colored logo
Psychology of Color Green
• Green is also one of the most seen color. We
tend to relate it with nature. Hence, green has
all the properties of the nature.
• Animal Planet deals with nature, hence the
green logo.
• The juice brand, Tropicana wants the users to
know that the juice is natural. Hence the
green logo
• Spotify has songs from all over the world. It is
Psychology of Color Black
• Black is the color of class. Black is the absence
of color. Hence, it has the capability to absorb
the energy. Black shows clarity.
• Black doesn’t stand out. It’s a recessive color.
But it doesn’t have any hidden meaning.
Black’s black. This make people trust it.
• Black is used by niche companies to state the
motto ‘We are who we are’
• Nike, Adidas, Wikipedia, etc. are examples of
companies using black in their logo.
Psychology of Color White

White is the perfect opposite of black. It reflects everything. It shows clarity

and flawlessness. White is ofen used with black and other colors in the logos.
Psychology of Color Violet
• Violet has the power of red combined with the
intellect and stability of blue. Violet is a
spiritual color. Violet soothes.
• Many companies which stand out as being
original and different use violet in their logos.
Example – Cadbury, Yahoo!, Taco Bell, etc.
Psychology of Color Orange
• Orange is the color of positivity. It lends
motivation to lift up, add up fun to a dull or
boring place, and is comforting to see at.
• Different companies using orange color in
their logo has a same message. Nikelodeon
and Fanta wanted their logos to represent fun.
• wanted their users to feel the
ease with which they can blog on its platform.
Psychology of Color Brown
• Definition:
• The process by which an individual selects,
organizes, and interprets stimuli into
ameaningful and coherent picture of the
world. [How we see the world around us]
Elements of perception:
• The elements of perception are:

1. Sensation

2. Absolute threshold

3. Differential threshold

4. Subliminal perception

1. Sensation:

a. Sensation is the immediate and direct response of the sensory organs to stimuli.

b. Stimulus or stimuli is any unit of input to any of the senses. e.g.: ads, brand name, etc.

c. Sensory receptors are human organs like eyes, nose, ears, mouth and skin.

d. A perfectly unchanging environment provides little or no sensation at all. E.g.: honking horn is never 
noticed in heavy traffic.
2. Absolute threshold:
• The lowest level at which an individual can experience
a sensation is called the absolute threshold.

• The point at which a person can detect a difference

between something &nothing.

• Eg: the distance at which the driver can note a

specific billboard on a highway.
• Sensory adaptation is getting used to
certain sensations so advertisers try to change their
advertisement campaigns regularly
3. The differential threshold

• The minimal difference that can be detected between two similar stimuli
is called the differential threshold or the just noticeable difference.

4. Subliminal perception

• People are motivated below their level of conscious awareness. People

are also stimulated below their level of conscious awareness; that is,
they can perceive stimuli without being consciously aware that they are
doing so.
• Stimuli that are too weak or too brief to be consciously seen or heard
may nevertheless be strong enough to be perceived by one or more
receptor cells.
• This process is called subliminal perception because the stimulus is
beneath the threshold, or “limen” of conscious awareness, though
obviously not beneath the absolute threshold of the receptors involved.
Dynamics of perception

• Human beings are constantly bombarded with stimuli during every minute and 
every hour of every day.
•  The sensory world is made up of an almost infinite number of discrete sensations 
that are constantly and subtly changing.
•  According to the principles of sensation, intensive stimulation “bounces off” most 
individuals, who sub consciously block a heavy bombardment of stimuli.

• One type of input is physical stimuli from the outside environment; the other type 
of input is provided by individuals themselves in the form of certain 
predispositions based on previous experience. 
• The combination of these two very different kinds of inputs produces for each of us 
a very private, very personal picture of the world. 
• Because each person is a unique individual, with unique experiences, needs, wants 
and desires, and expectations, it follows that each individual’s perceptions are also 
Perceptional Selection

• Consumers subconsciously exercise a great deal of selectivity as to which aspects 
of the environment they perceive. An individual may look at some things, ignore 
others, and turn away from still others. In actually, people receive only a small 
fraction of the stimuli to which they were exposed.

• Which stimuli get selected depends on two major factors in addition to the nature 
of the stimulus itself. (1) Consumers previous experience as it affects their 
expectations. And (2) their motives at the time. Ease of these factors can serve to 
increase or decrease the probability that a stimulus will be perceived.

• Nature of the stimulus

• Marketing stimuli include an enormous number of variables that affect the 
consumers perception, such as nature of the product, its physical attributes,  the 
package design, the brand name, the advertisements and commercials including 
copy claims, choice and sex of model, size of ad, topography, the position of print 
ad or a commercial, and the editorial environment.
• Expectations

• People usually see what they expect to see, and what they expect to see is usually 
based on familiarity, . Previous experience, or preconditioned set. In a marketing 
context, people tend to perceive products and product attributes according to their own 

• Motives

• People tend to perceive the things they need or want; the stronger the need the greater 
the tendency to ignore unrelated stimuli in the environment. In general, there is 
heightened awareness of stimuli that are relevant to ones needs and interests and a 
decreased awareness of stimuli that are irrelevant to those needs. 

• Selective perception

• The consumers “selection” of stimuli from the environment is based on the interactions 
of expectations and motives with the stimulus itself. These factors give rise to four 
important concepts concerning perception
• Selective Exposure

• Consumers actively seek out messages that they find pleasant or with which they are 
sympathetic. And they actively avoid painful or threatening ones. They also selectively expose 
themselves to advertisements that reassure them of the wisdom of their purchase decisions.

• Selective attention

• Consumers exercise a great deal of selectivity in terms of the attention they give to 
commercial stimuli. They have a heightened awareness of stimuli that meet their needs or 
interests and minimal awareness of stimuli irrelevant to their needs. Thus, consumers are 
likely to note ads for products that would satisfy their needs and disregard those in which they 
have no interest.

• Perceptual Defense

• Consumers subconsciously screen out stimuli that they find psychologically threatening, even 
though exposure has already taken place. Thus, threatening or otherwise damaging stimuli are 
less likely to be consciously perceived than are neutral stimuli at the same level of exposure.
• Perceptual Blocking

• Consumers protect themselves from being bombarded 
with stimuli by simply “tuning out” – blocking such 
stimuli from conscious awareness. 
• They do so out of self – protecting because of the visually 
overwhelming nature of the world in which we live. 
• The popularity of such devices as TiVo and Replay TV, 
which enable viewers to skip over TV commercials with 
great ease, is, in part, a result of perceptual blocking.
Perceptual Organization
• People do not experience a numerous stimuli they select from the environment as
separate and discrete sensations rather they tend to organize them into groups and
perceive them as unified wholes.

• Figure and Grounds

• People have tendency to organize their perceptions into figure and ground relationship.
How a figure- ground pattern is perceived can be influenced by prior pleasant or painful
associations with one or the other element in isolation.

• Grouping

• Individuals tend to group stimuli so that they form a unified picture or impression. The
perception of stimuli as groups or chunks of information, rather than as discrete bits of
information, facilitates their memory and recall. Grouping can be used advantageously by
marketers to simply certain desired meanings in connection with their products.
• Closure

• Individuals have a need for closure. They

express this need by organizing their
perceptions so that they form a complete
• If the pattern of stimuli to which they are
exposed is incomplete, they tend to perceive it,
nevertheless, as complete; that is, they
consciously or subconsciously fill in the missing
• Consumer imagery

• Consumers have a number of enduring perceptions, or images, that 
are particularly relevant to the study of consumer behavior. 
Products and brands have symbolic value for individuals, who 
evaluate them on the basis of their consistency with their personal 
pictures of themselves.

• Product positioning

• The essence of successful marketing is the image that a product has 
in the mind of the consumer-that is positioning. Positioning is more 
important to the ultimate success of a product than are its actual 
characteristics, although products are poorly made will not succeed 
in the long run on the basis of image alone.
• Perceptual interpretation

• Stimuli are often highly ambiguous. Some stimuli are weak 
because of such factors as poor visibility, brief exposure, high 
noise level or constant fluctuations. Even the stimuli that are 
strong tend to fluctuate dramatically because of  such factors 
as different angles of viewing, varying distances, and changing 
levels if illumination.

• Perceptual distortion

• Individuals are subject to a number of influences that tend to 
distort their perceptions, such as physical appearances, 
stereotypes, first impressions, jumping to conclusions and the 
halo effect.
• Product repositioning

• Regardless of how well positioned a product

appears to be, the marketers may be forced to
reposition it in response to market events,
such as competitor cutting into the brands
market share or too many competitors
stressing the same attribute.
• Perceptual mapping

• It helps them to know how their product and service appear to the customer
when compared to the competitors’ product and services.

• Positioning of services

• Compared with manufacturing firms, service marketers face several unique

problems in positioning and promoting their offering. Because services are
intangible, image becomes a key factor in differentiating a service from its
competition. The marketing objective is to make the customer understand the
how the service factor is related to the product.

• Perceived price

• It is important to know how the consumer perceives the price, as high, low or as
fair. The consumer must be made to perceive the price which he is paying is fair.
No one will be happy to know that they have paid twice the price.
• Reference price
• A reference can be external or internal; it can be any price that a consumer 
uses as a basis for comparison in judging another price.

• Perceived quality
• The consumer usually judges the quality of a product or services with the 
other attributes relating with it. Such related factors become important to 
understand in order to satisfy the customer.

• Perceived quality of the product

• Cues that relate to the physical characteristics of the product like color, 
flavor, or aroma, size etc

• Perceived quality of the service

• The service is more difficult for the consumer to evaluate; it is intangible, 
variable and perishable. They are produced and consumed at the same 
• Price quality relationship
• The studies have found out that consumers rely on price as an indicator of 
product quality, that consumers attribute different quintiles to identical 
products that carry different price tag, and that such consumer 
characteristics as age and income affect the perception of values. 

•  Retail store image

• Retail store have image of their own. The customer perceives the retail 
store according to their image and environment. The study proves that the 
customer determines by the availability of the products available in the 
stores, advertising, time availability and easy shopping.
• Manufacturer’s Image
• The customer’s imaginary extends beyond the perceived price and store 
image. The manufacturer who enjoys the favorable image generally finds 
new customer in his store where new products are accepted more readily 
than those manufacturers who have a less favorable or neutral image.
• Perceived Risk
• The perceived risk varies depending on the 
person, the product, the situation and the 
culture. Some of the customers may perceive 
high degree of risk depending on the 
consumption situation.
• Types of Perceived Risk:

• Functional Risk: Is the risk that product will not perform as


• Physical Risk: Is the risk to self and others that the product may

• Financial Risk: Is the risk that the product will not be worth its cost.

• Social Risk: Is the risk that a product choice will bruise the
consumer’s ego

• Time Risk: Is the risk that the time spent on in the product such may
be wasted if the product does not perform as expected.
• How consumers handle risk

Consumers develop a self defensive weapon in order to satisfy the unsatisfied needs.

• Consumers seeks information

• Consumers seek information through his friend family and other people. They spend 
more time thinking and getting information about the product when they associate a 
high degree of risk with the purchase.

• Consumers are brand loyal

Consumers remain brand loyal in order to avoid the risk.

• Consumers select by brand image

When consumers have no experience with the product they trust the brand name. The 
consumers often think about the well known brand, worth buying and go for the 
• Consumers reply on store image
• If the consumers do not have any information about the 
product they trust the merchandise buyers of reputable 
stores and depend on them.

• Consumers buy the most expensive model

• When in doubt the consumers feel that the most expensive 
model is probably the best in terms of quality and price.

• Consumers seeking reassurance

• Consumers who are uncertain about the product choice 
seek for reassurance through money back guarantees and 
warranty’s or trial use etc.
• CRM is a combination of policies, processes, and strategies
implemented by an organization to unify its customer
interactions and provide a means to track customer information.
• It involves the use of technology in attracting new and profitable
customers, while forming tighter bonds with existing ones.
• Customer Relationship Management entails all aspects of
interaction a company has with its customer, whether it is sales
or service related; it starts with the foundation of relationship
• CRM is a systematic approach towards using information and on
going dialogue to built long lasting mutually beneficial customer
CRM includes many aspects which relate
directly to one another:
1. Front office operations — Direct interaction with customers, e.g. face to face
meetings, phone calls, e-mail, online services etc.

2. Back office operations — Operations that ultimately affect the activities of the front
office (e.g., billing, maintenance, planning,
marketing, advertising, finance, manufacturing, etc.)

3. Business relationships — Interaction with other companies and partners, such as

suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups,
trade associations). This external network supports front and back office activities.

4. Analysis — Key CRM data can be analyzed in order to plan target-marketing

campaigns, conceive business strategies, and judge the success of CRM activities
(e.g., market share, number and types of customers, revenue, profitability).
Types of CRM

• There are several different approaches to CRM, with different

software packages
1. Operational CRM
• Operational CRM provides support to "front office" business
• Interactions with customers are stored in customers' contact
histories, and staff can retrieve customer information as
• The contact history provides staff members with immediate
access to important information on the customer (products
owned, prior support calls etc.), eliminating the need to
individually obtain this information directly from the customer.
• 2. Analytical CRM
• Analytical CRM generally makes use of large volumes
of data and other techniques to produce useful results
for decision-making.
• The more information that the analytical software has
available for analysis, the better its predictions and
recommendations will be.
• Designing and executing targeted marketing campaigns
• Analyzing behavior of the customer in making
decisions relating to products and services
(e.g. pricing, product development)
• Analyzing customer profitability.
3. Collaborative CRM
• Collaborative CRM information of company's
dealings with customers that are handled by
various departments within a company, such
as sales, technical support and marketing.
• Staff members from different departments can
use information collected when interacting
with customers.
4. Consumer Relationship CRM
• Consumer Relationship System (CRS) covers
aspects of a company's dealing with customers
handled by the Consumer Affairs and Customer
Relations department within a company.
• Departments handle in-bound contact from
anonymous consumers and customers.
• Early warnings can be issued regarding product
issues (e.g. item recalls) and consumer
5. Social CRM
• The rapid growth in social media and social
networking forced CRM product companies to
integrate "social" features into their traditional CRM
• Other emerging capabilities include messaging,
sentiment analysis, and other analytics.
• Many industry experts contend that Social CRM is the
way of the future, but there are certain
• Top CRM minds agree that online social communities
and conversations can be dangerous for companies.
They must be monitored frequently.
Strategies for Building Relationship
•Organizations develop and maintain  relationship depending on certain factors. These include 
nature of business, its size its market share, nature of product , volume of sales, geographical 
concentration, socio – economic status and  customers concerned, competitors and so on
•1.      People : People within the organization have the basic role in developing and maintaining 
relationship with customers. Everyone in the organization must know that satisfying the customer 
is their utmost goal. Everyone from the lowest to the highest level irrespective of their functional 
specialization must work towards one of the main objectives of the  organization – customer 
•2.      Process : Process involves series of activities from the identification of needs to need 
fulfillment. Need fulfillment requires manufacture of products with desired attributes. The process 
has to be derived from the customer’s viewpoint which  leads to  total customer satisfaction.
•3.      Product : The product must constantly provide value addition. The customers expectations 
 increases  due to various reasons. A customer satisfied with a given product may soon become a 
dissatisfied customer in view of the changes that take place in his expectations.
•4.     Organization : To build customer relationship, an organization should be aware of the 
technology advancements and provide quality services in tune with the customer’s expectations. It 
should concentrate on total customer satisfaction and respond to the requirements of the customers 
faster than its competitors.
5. Setting Satisfactory Service Standard : A customer not only expects quality products but
also quality services. Organization should provide service in all phases viz. pre sales, during
sale and after sales. During presales when the customer develops expectations, the
organization must ensure quality and availability of the products in time. During sales,
when the customer experiences the sales process, the organization must provide the
customer an opportunity to inspect, and treat them with courteous attentiveness, prompt
reply etc. During after sales, when the sales are finalized, the organization must provide
supporting services such as speedy replacements, simplified complaint procedures, efficient
maintenance .

6. Concentration on Competitors: An organization must be aware of the competitors

performance, their strategy and style of operations and compare same with its own
performance. Customers do such comparison and make purchase decisions. Such analysis
done by organization would help in increasing its strengths and reducing its weaknesses.

7. Customer Analysis : Customers referred include the present customers consuming the
products of an organization and customers who are presently using products of
competitors. so on. This analysis is to be performed not only on the existing customers but
also on the former customers, so that corrective actions may taken to retain current
8. Cost Analysis : An organization must focus attention on the cost of
the product or service. Always, there must cost reduction without
compromising on quality. The organization must reduce costs and
retain the same good quality or improve quality.
9. Concentration on the Paying ability of Customers: Pricing
decision are to be governed not merely by cost related factors.
Before fixing price, the paying ability of the potential customers
must also be viewed. To some extent prices are to be adjusted in
tune with the fluctuations in the paying ability of potential

10. Knowledge on Purchase Behavior Pattern: Organizations

should have a knowledge of the purchase behavior pattern of their
customers. The influencing factors of the purchases decisions
process and the ultimate outcome are to be analyzed in depth.
11. Differentiation in Prices and Quality Standards : An organizations
may come forward to offer services or brands of different varieties
with price variations.

12.Attention on Changing Requirements of Customers : The

requirements of the customers are bound to change in time with the
changes in their lives, demographic and psychographic profiles and
the related aspects. Customers up to a given point of time would
concentrate on life maintenance needs and then to life changing

13. Building Switching Barriers : In order retain customers, organizations

must come forward to the build brand switching barriers. In view of
those barriers, switching may be made difficult and not worthwhile.
Those barriers may include incentive schemes, relationship based
pricing, additional services, attractive prize schemes, sentiments based
• Electronic customer relationship management (E-CRM) is
the application of Internet-based technologies such as
emails, websites, chat rooms, forums and other channels
to achieve CRM objectives.
• It is a well-structured and coordinated process of CRM
that automates the processes in marketing, sales and
customer service.
• An effective E-CRM increases the efficiency of the
processes as well as improves the interactions with
customers and enables businesses to customize products
and services that meet the customers’ individual needs.
The benefits of E-CRM include the following:
1. Improved customer relations, service and
2. Matching the customers' behavior with
suitable offers
3. Increased customer satisfaction and loyalty
4. Greater efficiency and cost reduction
5.Increased business revenue
• Thank you