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Consumer Behaviour

Faculty : Prof . Ashok


Kumar

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Core text books : 1 Consumer behavior
Leon G Schiffman & L.L Kanuk

2 Consumer behavior ( A
strategic Approach )
Dr Henry Assael

3 Consumer Behavior &


Branding S.Ramesh Kumar
( indian
context )

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How does Consumer behavior study help business?

A recipe of good marketing strategy lies in


sound understanding of its market.

All good market communication


strategies( brand , IMC
) are developed from deeper insight in the
market.

Sound Product Distribution, Price , Customer services


( CRM ) strategy etc originates from understanding of
behavior of a market.
Consumer Buying process

Impulsive buying : Consumer buy due


to stimuli

Compulsive buying : Consumer feels the


product or service is best suited for her
need

Addictive buying : Consumer feels the


product or service is only option available
to meet her aspiration & life style .
How does consumer buying behavior study help business .
Break
MARKET CLUTTER

Create DIFFERENTIATION
( USP)

Overcome Commodity
image

Eliminate
Create Mind base PRICE WAR
Positioning

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ernal BLOOD
only BATH use
Re 5%
purchase

Trail 20%

Preference 25%

Linking 40%
Comprehension 70%
90%
Awareness
CONSUMER BEHAVIOR STUDY & MARKETING
COMMUNICATION
Build / Create Dominating or
self expressive brands.

Integrated Market Communication


& MARKETING Strategies

Consumer Behaviour &


Research

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Doing business without
Knowing your Consumer
is
like winking at a pretty girl in
dark.
You only know what you are doing
but not the pretty girl.
What are the chances that she will respond ?????

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ASSIGNMENT OF CONSUEMR RESERARCH MARKS =
30 IDENTIFY A RESEARCH OBJECTIVE

DEFINE RESEARCH PROBLEM

DEFINE RESEARCH DESIGN

DEFINE RESEARCH METHODOLY

SAMPLE FRAME
SAMPLE SIZE
SAMPLE UNIT
DATA COLLECTION
QUESTIONAIRE
DESIGN
DATA COLLECTION APPROACH
DATALANSYSIS
Consumer Power & Shifting trend in
business

C• onsumer to TRANSUMER, PROSUMER

C• reate MASSCLUSIVITY - Create exclusivity from the


mass.

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The center of all business a ―Consumer‖ has been
transforming rapidly & have become more opaque .
Consumer consistently demand value from the products &
services .

The marketer believes that brand is most important to a


consumer .

A consumer is exposed to 600 market communication a


day approximately. ( Research results )

A consumer looks beyond the the basic functionality


of products & services which he does not articulate.

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Consumer Insights
A consumer insight is a discovery about people that enables
us to establish a natural connection between a product and
their daily lives. Insights into peoples‟ behavior are not
singular by nature, but are a collection of motives, ideas,
memories that come together and form an opinion on a
product or service. The skill is to identify the insight and
create a clear single proposition that enables people to buy,
try or react to your product.

“It does exactly what I wanted it to do, I couldn’t


live without it”. …. Consumer
Consumer behavior study is conducted by an
organization at the following stages.

Pre sale Consumption After sale


Situation Stage Scenario

Understand the Maximize the sale Build loyalty &


Behavior pattern & involvement with Brand commitment
To shape the Product /service
Communication

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Socio graphic Socio culture Demographic
Factor Factor
External Marketing strategy for
Geographic 1. Product &
Factors factor service
Development
Situational Consumer Consumer 2 STP
3 Communication
Factors Life style Personality 4 CLP
1. Pricing strategy
Situational 2. Sales strategy
need Internal 3. Brand building
motivator Factors
Attitude
& aspiration
Perception
Self concept

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Linear perceived value model.

Consumer = Brand attribute X Consumer


Attribute
Perceived Value

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Consumer types according to loyalty

Personal consumer & Business Consumer

Solus Users/ Dual users Flirts /


Loyal buyer Switcher
Degree of commitment towards product or service brands.

High Medium Low

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Dimensions of Loyalty

Strongly feels the chosen


1 Emotive Brand is best & stick to it.
Loyalist loyalist
2 Inertial Infrequently re assesses
loyalist Purchase decision .

Frequently re assesses
3 Deliberative purchase decision . Re
Customer loyalist confirm the brand chosen
Meets the desire & function

1 Life style Re consider the brand with


Downward every Change in need.
Migrators Downward
migrators

2 Deliberative Believes in selecting new


migrators brand every time .
Frequently re assess the new
brand in the market.
3 Dissatisfied
Downward Highly
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mr Prompted to re 17
iingtrearntaol
valuate alternatives
CLP, Loyalty cost & Consumer behavior

Return/ Total Revenue = (R new + R existing )


Revenue
Increased
profitability
MCC

Time

Customer life cycle

Cost

LCC

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Consumer
Types
Organizational / Industrial
Personal consumer
Consumer

Buys for individual Consumption. Buying for organizational consumption


Buying decisions are influenced by Buying decisions are influenced by
Cognitive, Personal, cultural ,social Quality , service , attitude of the
Influence & Situational Financial considerations etc . Besides this ,
suppliers
Factors. Environmental , organizational, interpersonal
Factors influence the decisions.

The buying decision involves decision


Makers viz
1 End User,
2 Influencer,
3 Financial Decision makers
( management )
4 commercial buyer.
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SatSioEn :NfoTr
OF ALL GROUPS 19
ARE
Buying decisions in B2B system are influenced by :

 Quality
 service
 Attitude of the suppliers
Financial considerations( Ability to absorb credit ,
differed payment , Lease rental etc )
 Environmental factors ( Legal & political )
 Capacity to supply & lead time .
 Technology factors
Business process such as use of SCM , ERP e-
Business tools.
 Organizational interpersonal dynamics .
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An integrative model for organizational buying behavior

Information
Situational
Source
Factors
Policy factors Buying
Sales person
Financial Decision
Trade show
Service
Direct mail
Technology
Seminar
Word of mouth
Professional Influencing Conflict
Journals Decision Within
Agents Buying center
Active search
Product
Perceptual organization Specific
Distortion specific
Time Perceived Type of
Pressure Risk buying
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Precipitation
Start of the process has to be the realization
of the need, a problem that a purchase can
solve. The stimulation could be internal and
entirely routine.
It could be a planned new buy precipitated, for
example, by the implementation of expansion
plans or the imminent production of a new
product.
It could also be something more sudden and
dramatic than that, such as the failure of a
piece of plant or machinery, or a lack of stock.

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Industrial Buying Decision Process.
End Users ( R&D , Product
design,
Operation )

Financial Top Management


Team Key decision
Maker

Commercial Team ( Value engg,


Relationship)
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Consumer Models : Conceptual Consumer models
which help in understanding the behavior from
information search to decision making while involved in
a buying process.

Consumer Models are : Economic Model


Sociological model
Psychoanalytic model
Learning model
Howarth Sheth model
Engel –Blackwell- Kollat
Model

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Economic model is on the principle that consumer
looks for maximum utility at minimal price.
Price effect. Deep discounting or minimum price tags
increases the consumption & demand .
Substitute effect. : More substitute products available,
lesser will be the demand of the original product.
Income effect. As the disposable income level
increases
, the consumption level will also go up.

Short coming :
The model ignores the social & psychological impact
on the buying behavior , assumes the price is the only
factor which drivesNotthe buying behavior .
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Psycho analytic model :
Behavior of a consumer is determined by his strong desire & need.
The purchasing process is governed by motivational forces . Motivation
stimulates people in to buying action.
Sense of achievement &
competence
Self
Actualization
Needs which are Esteem Owning Power & Prestige
important to (Recognition) Ego , status , success
consumer
Similar belief, status
Social(Affiliation) class etc
Assurance ,
Safety (Security) Protection, stability
Physiological ( Basic)
Hierarchy of need : Abraham MasNloowt f’osr cmirocudlaetlion :
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Learning Model.
Consumer Learning : A process by which a consumer acquires
the purchase & consumption knowledge experience which apply to
his future behavior . .

Components of learning process are :


Drive Clue Response Reinforcement Retention.

Drive : strong stimuli which impels action.


Clue: An object in the stimuli which elicit a specific response.
Response : Behavioral response in the from of physical terms ,
Attitudes, Perception etc.
Reinforcement :Environmental events which increases the
psychological process of motivation, increasing the likelihood
of specific response.
Retention : Stability of learned behavior over a period of time.
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Classical conditioning process of learning :
Behavior becomes dependent on certain stimuli or events in the environment.
A consumer is said to have learned , when he or she responds in a predictable
manner to a known stimulus. [ Also known as Stimulus - Response ( S -R)
theory of association )]
When a consumer learn to connect between stimuli & response it is
Called behavior .This happens due to repetitive association
between
Stimulus
Unconditioned& response .
stimulus Unconditioned Response [ Reflex
( piece of meat) ( Spontaneous reaction) Dog Action]

Conditioned stimulus
(Pavlov’s experiment of classical conditioning
)

Conclusion : Conditioned Conditioned response


stimulus
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Eg : Desirable association for Johnson soap Ad

Milk & Rose Johnson


Petals Little toddler
soap

Unconditioned
Soft & tender Symbolic of
stimuli
Skin care natural & purity
Pure ,
Natural, Soft
&Classical
tender conditioning helps to build strong consumer
connect with the brand for strong association.
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Sociological model.

Close associates

Family members Consumer Peers & colleague


In an organization

Friend circle

Target market is influenced by roll models of the society


who influence the buying behavior . Marketer’s analyze
aspiration level within the target segment & create the
same in the brand toNotafopr ards the brand. 33
cpirceulaatilont:hfoer imnterntaol uwse
Howarth Sheth Model : Consumer learning & behavior shaping
happens due to perception & attitudes which they form about a
brand leading to a favorable decision making.
Hence a input stimuli leads to learning constructs , which drives
the behavioral output , which in turn is influenced by external
variables.
Attention
Overt
Input stimuli
Search Intention Purchase
1. Tangible
( significant stimuli)
2. Intangible Stimulus Perceptual
( Symbolic stimuli ) Ambiguity Motives Attitude
Bias
3. Social group
( Social stimuli ) Brand
Attention comprehension

INPUT Perpetual Learning Output


Constructs Constructs

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E-B-K Model
It comprises of 4 components :
Information process , Control
unit ,Decision process Environment influence
Exposure Evaluation Income
Need
Attention criteria Culture
stimuli
Comprehension Perception Social class
Retention Attitude Others

Internal &
external
search Of
alternate
evaluation
Post purchase Purchasing
evaluation Process
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Consumer Segmentation

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Consumer segmentation on the basis of lifestyle &
Aspiration helps to understand the persuasive motive
. ( Psychographic segmentation )
Value
Inner consumer core
Soico culture

Aspiration

Outer core
Demographics
Life stage
Situational
Geographic
Bajaj Scooter captured complex reality of existence
of middleclass India .
As it is said , if an Indian middle class man were to
be reborn as a product , chances are that it would be
a Bajaj scooter.

Squat, belly going to pot , wearing grey safari suit,


undistinguished, but resourceful. With his wife
perched uncomfortably at the back , Gudiya squeezed
between the two, & Cheeku standing in front.

The product literally & metaphorically at the heart of


Indian middleclass.

How did it fit in to the life of mass middleclass ?


Consumer Segmentation Approach

AIO inventory ( Activity , Interest ,


Opinion ) SEC classification
VALS –II
LSM
Prism
Monitor Mindbase
Global Scan

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Family Life Stage
Family Life stage is studied at :
•Bachelor hood status
•Married couple ( DINK )
•Parent hood ( DISK)
•Post parent hood
•Dissolution
•Parent hood is further classified in to Full nest 1 , 2 & 3
stage .
•Post parent hood is classified in to Empty nest 1 & 2

Each stage depicts a distinct buying behavior & is


influenced by other factors which drives the priorities &
motivation.

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Consumer segmentation

Changing trends: Children hold strong buying power


in key segment. ( Indian kids rank 3rd worldwide in
influencing the buying decision)

Segment Children Decision maker.

Soft drinks 33.6 %


Health drinks 31.4%
Tooth paste 30.5%
restaurants 28.6%

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Sub Segmentation of Kid
consumer :
Segment: 1 Infant ( 1 -12 Months)
2. Toddler ( 13 -48Months )
3. Tooth ager ( 4- 5 Yrs )
4. Toonagers ( 6-8 Yrs )
5 Tweenager ( 8-12 Yrs )
6 Teenager, (13- 19 Yrs )

[parameters : Age, intelligence( IQ) level , Family group


belonging , societal influence , point of purchase ,
Personality , Self concept. Media influence . Parenting
style

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1. Hyper Parenting : Over scheduling children’s lives
with extra curricular activities & push them hard for
academic excellence.

2. Helicopter parenting : Habit of the parent to hover over their


children obsessed with ensuring their safety . Builds
protective attitude where parents keep tabs on their
children’s every move.

3 Stealth Parenting

4. Authoritarian Parenting

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3 Stealth Parenting

4. Authoritarian Parenting

These parenting process influences the child‟s development


in terms of how they involve buying with age. Their
knowledge, attitudes to a brand , pricing & decision making
power etc .

The decision making differs at every stage:


1. Perceptual stage ( 3-7 Yrs )
2. Analytical ( 7-11 )
age 11-16)
3 Reflective age

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A research conducted by Disney India & Group M
India revels that new age Indian kids( 4-14 age group)
are
Tech savvy , worldly wise ,opinionated & success
oriented.
They articulate the brand preference , influence in the
decision making & also make independent decisions
on brands.

Data shows that 51% of the total population


researched ( 34000 children across Mumbai, Delhi,
Kolkata, Banglaore, Ludhiana, Ahmedabad, Hydrabad,
Chennai, Lucknow & Chandigarh) accompany their
parents for shopping. 66% handle money
independently.
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48% have their sayNotinforthe
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Socio- Economic Classification. SEC Segmentation .
SEC divides the house hold on the basis of the CWE’s
occupation & education.
Assumption : The co- relation between education &
occupation was that better education will have organized
employment opportunities, hence high income.
However it failed to explain the buying behavior of a
consumer who buys Dove soap – a luxury product for Rs 30,
but not well educated .
Accordingly the consumer class will be categorized
as : SEC-A1 , A2 , B1, B2 C1 …..D
The same can further be named as : Premium class ,
Middle Class , lower middle Class.

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Other approaches .
Unilever’s proprietary segmentation model. Living
standard measurement index. ( LSM) index as an
alternative to SEC . It is based on 25 parameters
putting consumers in to 18 clusters.
Parameters are :

Income , Occupation, Durable ownership( daily to


luxury ) , Work environment , media choice ,
entertainment preference , cultural sub cultural &
cross cultural factors .

Nup scale ( Nielson Upscale ): It is based on usage


of 12 consumer durable products from different
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According to a research study , women class has progressed
from one Socio economic category to the next on the parameters
like traditionalism /self sacrifice to westernization / individualism
. Modern/Westernization Seeking Luxury
Out going
Fashion conscious I
S Bold & librated. n
e d
l Seeking equality ,quality
SEC A i
f conscious disturbed by v
vulgarity SEC B i
S d
a
SEC C Religious
u
Anxious & Worried about
c a
change.
r SEC D l
i i
f Seeking economysacrificing s
i & social conservatism t
c Traditionalism i
e c
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Discovering new identity in Urban woman
The quint essentional self sacrificing Gharelu married Indian urban woman
consumer is increasingly morphing in to independent minded assertive
entrepreneurial class.
( Research study conducted by Lowe Asia – Pacific )

Psycho graphically charted consumer segmentation


Ms/Mrs Hasmukh Modern ( willing toMsembrace
/Mrs new values)
27% (Role model India
Didi )
Mrs Meri Awaz Suno
(Attention seekers)
Stability 31% Change
seekers Ms/Mrs Pataka seekers
Ms/Mrs Gharelu Cool
18% ( Home pride)
Mrs
Hey
Bhag
van Traditional ( Be contended /compromise
Moa with old system)
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Mrs Garelu is just 18% of the total sample size. Who are they ?
Home pride . A perfect home maker .

Behaviour :
Uses parachute oil for kids & self , Fair & lovely being a part of her make up kit.
She is proud of her washing machine & water filter. She is likely to buy a
microwave owen or expensive home appliances. But she prefer to use branded
sanitary napkins. Her husband relies heavily on her.
Social : She hate wasting money on outing , eating entertainment. Entertainment is
all around Jassi & K series .
Belief : Strong believer of good education to her kids. Choosing any
unknown New career by the family member is not acceptable.
Attitude : Family is more important & believes that star determine her
fate. Value : Respect can never be compromised. High level of tolerence .
Never address the husband by name .( “Munne ke papa, Suno ji”
type ) . Do not
question the roots of tradition, rituals. They are always for good. Just
adapt it.
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She is Quintessentional sacrificing
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Fast moving trend is seen from Mrs Gharelu to Mrs Has
mukh
Who is Mrs Hasmukh ?

Attitude: A lively cheerful & positive personality. She treats her life like a must win
contest . A friendly nature . Talking to a stranger of opposite sex & accepting him as
a friend is normal . A perfect wife, mother , daughter in law , friend , independent
minded , divides her time between husband , kids , family herself, & her friends. Not
self sacrificing

Belief : While she is religious , she does go to beauty parlour with equal vigour.
Usage : She likes to buy things which make her household chore more convenient .
Microwave Owen, Dishwasher, Vacuum cleaner , Oriflame conditioner, foot cream,
Nourishing night cream products .
Social gathering , party with friends , family etc.
She encourages her kid to be more independent, explore & peruse their career where
you can deliver your best result, like she herself would like to do. She likes to be
as trendy .
seen
She is a role model Didi for many women

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Mrs Pataka:
Characterised by the style quotient , acts cool & talks about doing what other
women don‟t. Take pride in sending their kids to the best school in town. Style
matters in terms of regular visit to palour, PTA , Social meet , week end party &
dining , need varieties of perfume for different occasion. She expects her
husband to consult her in all decisions & upholds her individualism.

Attention seekers: Stifled by the various restrictions & norms imposed on her
craves for attention, likes when others empathise with her .Her husband does not
necessarily take her opinion in all home related issues. Saving is not her forte. Will
use fairness cream , oil her hair on daily basis. She hopes high expectation on her
son& daughter. She does not mind using unbranded or lesser known brands still
feel good about herself.

She feels miserable about her inability to send her kids to expensive schools,
lavih spending .She believes that fate is determined by her stars.
She wants to come out of middle class dudgery. More of self sacrificing type
& wants to move away from joint family class.

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The HEDONIC TREADMILL ( Daniel
Kahneman- Nobel Prize winner Economist &
Psychologist)

Studies show that happiness rises with income up to a certain point


at which the basic needs are met, after which it stagnates as
aspirations also rise with income.

Consumer
Satisfaction

Income

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Summary of Profiles
West North
Religious yet outward centric Impressionable
Worried about change Conservative
Materialistic value

South East
Quality conscious Anxious about future
Guilt if spending on self. Bold , more librated,
Accept society as it is , Optimistic Discontented
willingness to experience

new
Rural , Urbansegmentation
Institutional , Global , Semi rural ,corporate
: Large Semi Urban leading
segment to life
( Global
style, climate ,, SME
& Domestic) population
, SOHO etc., FTU Govt, PSU etc

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Role of culture in
consumer behavior
Culture
Culture is part of the external influences that impact the
consumer. Culture represents influences that are
imposed on the consumer by other individuals.
Culture is a complex study which includes knowledge,
belief, art, morals, custom, and any other capabilities
and habits acquired by a person as a member of
society Culture, as a "complex whole," is a system of
interdependent components.

Knowledge and beliefs are important parts.


•In U.K exposed hands or legs among women in formal
, social gathering is reflected immoral.

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In Japan, on the other hand, groups of men and
women may take steam baths together without
perceived as improper.

What at least some countries view as moral is in fact


be highly immoral by the standards of another
country.

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Culture has several important characteristics:

(1) Culture is comprehensive. This means that all parts


must fit together in some logical fashion.

(2)Culture is learned rather than being something we are


born with.

(3)Culture is manifested within boundaries of acceptable


behavior.

(4) Culture is gratifying & persistent .

(5) Culture is integrated & organized.

(6) Culture is acquired.


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Culture can be viewed from independent
levels as:
1. Ideological systems. : Mental system consisting
of ideas,
belief, values & ways of reasoning.

Cognitive ( beliefs, customs)

Normative ( conduct & norms )

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2.Organizational system ( Family & Social class ) .It
coordinated behavior .

3.Technological system : ( Skills & techniques used to


behave in a particular way)

Variation in culture happens when the values ,norms


belief , moral, ritual, custom , Tradition etc influencing
ideological , organizational & technological system are
questioned by the consumer for its existence & sanctity
to be followed.

When these factors are vulnerable to change , variation


in culture is natural process.

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Nonverbal factors influencing cultural variation

SYMBOLS
COLORS
NUMBERS

What is
Semantic
&
symbiotic
culture ?

Deer is a Symbol of homosexuality in Brazil .


Owl Symbol of wisdom in US
Number 4 is in auspicious in Japan & 10 & 13 th in
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Culture, Subculture , Cross culture influence in
Buying behavior

Nationality legal
barrier SUB Cultural
Cast influenceLanguage

Ideological
system

Organizational
system
Ethnic Religious

Cross cultural influence


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Understanding the culture of a market can
help to formulate more effective
communication strategy to overcome the
barriers to acceptance.

Low diffusion rate of a product is primarily


due to resistance to accept a concept on
account culture .

All teaser communication campaigns are built


to break the cultural barriers .
Consumer personality &culture
All 30 days same
Confident
Symbols ,freedom
Independent
Heroes &Cloth
Rituals usage

Value Practice

Family values
Hush Hush Culture

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Perception & Attitude formation

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What is the role of perception in consumer buying ?
Mind base positioning of product or service .

•Perception is psychological mediation. It refers to the


process of organizing and interpreting sensory
information.

Perception is the process in which the brain selects,


organizes, and interprets neural messages into a
psychological experience on the basis of cognitive
ability and soico cultural values governing in the society
.We are aware of the meanings that brain generates
from sensory information.

Perception enables us to recognize meaningful objects,


pictures, faces, language, etc & interpret the same the
way we want.
Sensation drives perception.

Psychological mediation

LBS RBS

Sensory stimuli

Visual , Audio , Taste, Smell, Touch

Marketing science behind perception management is to


identify right sensory stimuli which would invoke desired
decision within consumer ( logical or abstract ) . This
depends on the positioning objective .
A research presented by scientist Martin Lindstrom reveal
the conceptual essence of senses as a source of attitude
formation and change.
While Sensation is a physical process of converting
stimulus energies, without sensation, there would not
be perception.

Perception co-relates , integrates & comprehends


the various sensations & information received . It
is formed by both physiological &
psychological factors.

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Perceptual constructs

Stimulus Perceptual bias Perception


ambiguity
Stimulus ambiguity : Interpretation of information provided
according to selective preference.

Ambiguity happens due to social values prevailing in the society


acting as a constraint for accepting the product/service.
When the community values wins over social values,
the product gets accepted in the society .

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Positioning of emergency contraceptive pill as “ Protection
when things go wrong at the heat of the moment”.

In the backdrop of social norm which claims the


communication is obnoxious ( promotes premarital sex &
acclaimed moral looseness ) , the success comes as it
helps to overcome the mass murder of life and self
protection.

Perceptual bias : Attending to the selective information as a


result of one‟s own frame of reference.

Perception is a process of selecting, organizing & interpreting or


attaining the meaning of what is happening in the environment.
Thresholds and Absolute thresholds

A threshold refers to a dividing point between


energy levels that do and do not have a detectable
effect.
. What happens to one’s threshold as the stimulation
increases? As the stimulus intensity increases, the
probability of detecting a stimulus also increases.

Absolute thresholds define the boundaries of sensory


capabilities. An absolute threshold refers to the intensity
level at which the probability of detection is 50 percent.
What are some of the lowest absolute thresholds
discovered in psychophysics research?

1 visual absolute threshold is being able to see a


“Weber‟s Law.
Weber‟s law states that the magnitude of differentiation is
a constant proportion of the size of the initial stimulus. The
constant proportion is called “Weber‟s Fraction.”
Techniques to form good
Perception within consumer :

• Signal detection
• Just noticeable differences (JND’s)
• Subliminal perception
• Sensory adaptation
• Selective attention
Merlyn : Wao ! What a position ?

Bob : What a figure .

James : Irresistible, I am excited.

Sandra : I wish I am in that position.

Tom : I envy you ?

Apply for the position of Creative Designer in life


style apparel segment . Annual emolument : 16
Lacs Only lady candidate may apply.
JND : Just Noticeable Difference . ―JND‖ refers to
the smallest difference in the amount of stimulation
that a specific sense can detect.
Selective attention refers to our focusing on a
limited aspect of all that we comprehend, enjoy ,
and experience .

This explains why cell phones are dangerous


when driving. We focus on the phone
conversation and not the other sights and
sounds on the road.
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Subliminal perception

•Subliminal perception refers to “below threshold.”


Subliminal perception is the registration of sensory
input without conscious awareness. subliminal
perception techniques are used by media to grab the
attention using money , sex as strong stimulator.
SILK CAMISOLE SET
Short Kimono
Behavioral researchers agree that sought benefits and
consumer perception are the main antecedents of brand
preferences, which is as follows:

BP =∑ PA + CP

Where:
BP - Brand preferences
PA - Product attributes
CP - Consumer
perception
External Factors
Internal Factors Intensity& Size

Selective attention
P
Position
Selective Exposure E
Selective reception, R
comprehension & C Contrast
retention, E
Perceptual vigilance P
or defense Novelty
Expectation
T
Subliminal I
perception O Repetition
N
Movement

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Both internal & external factors influence the perception
of the buyer
Blind test of Coke & Pepsi

Pepsi preference population 51 %


coke 44 %
equal /can‟t say 5%

Identity revealed test

Pepsi 23%
coke 65%
equal/can‟t say 12%

Conclusion : Both internal & external factors influence the way


in which an individual perceives a product or brand.
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Perception drivers in consumers
Cultural factors
Social factors

Core values
What buyer‟s feel
which drives
acceptable norm
the consumer
in the society
What
The way consumer motivates
relates & draw meaning the
of some thing. consumer's
Life style
Psychological factors Personal factors

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Semantic perception and synthetic perception
concepts.

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Consumer Attitude Study
Consumer Attitude

In consumer behavior context , attitude is a learned pre deposition


to behave in a consistently favorable or unfavorable way with
respect to a given stimuli. (Brand )

Learned deposition refers to information source , perception ,


experience , exposure to media etc which helps to build an attitude
& gives momentum to the behavior .
The momentum can be negative or positive.

Consistency refers to the voluntary decision ( Compulsive buying


) which makes the consumer to purchase the product/ service /
brand till such time there are no intervening factors which force
the consumer to change the attitude.

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Two school of thoughts in Attitudinal theory

1 . Insights on product usage :


Attribution theory focuses on how consumer assign causality to
events and how they form or alter attitudes as an outcome of
assessing their own behavior, or the behavior of other people or
things.
Dove communication is built on the product insight that soap dries
skin , but Dove doesn‟t because of its moisturizing content to
nourish the skin.

Cognitive dissonance theory : Anglo Saxon View ( Western


theory)
and Non Anglo Saxon View ( Eastern cultural rich view )
Theory suggests that the conflicting thoughts, or dissonant
information, that follow a purchase /acceptance decision might
propel consumers to change their attitudes to make them
consonant
Anglo-Saxon view : It is one big market world over and
consumers across are same with same motivation . Nike‟s
approach to market with “Just Do it” is based on the
fundamental that to win is a common motivation across.

Non Anglo Saxon View ( Eastern cultural rich view )


Among many others , brands that has successfully shifted
the attitude of market are :
Fair & Lovely ( HUL) i -pill ( Cipla ) , Cadbury dairy Milk
etc .

Failed to shift the attitude are :


Communication on Amul Macho inner wear & Chocolate
flavor Axe effect male deodorant .
While promoting male contraceptive products are unobjectionable,
why emergency contraceptive pill for women invited obnoxious
response?

Can marketer‟s create an attitudinal shift towards mild alcohol


filled chocolate in Indian market ?

Can marketer‟s create an attitudinal shift towards Toilet roll


paper in Indian market ?
The toilet paper is a large industry in US . Twenty-six billion
rolls of toilet paper, worth about US$2.4 billion, are sold
yearly in America alone. Americans use an average of 23.6
rolls per capita a year.

Moist toilet paper was first introduced by the Kimberly-Clark


in the United Kingdom in the 1990s, and in the United States
in 2001, two countries in which bidets are rare. It is designed
to clean better than dry toilet paper after defecation.

The 16th century French satirical writer François Rabelais in


his series of novels Gargantua and Pantagruel, discussing
the various ways of cleansing oneself at the toilet, wrote that:
"He who uses paper on his filthy bum, will always find
his ballocks lined with scum", proposing that the soft
feathers on the back of a live goose provide an optimum
cleansing medium .
The disposable paper products market in India is
limited to sanitary protection and incontinence
products, which continue to form the bulk of the
sales of disposable paper products in India. Mass
media advertising as well as below-the-line consumer
outreach activities are the key growth drivers
alongside rising concerns about health and hygiene
as well as growing purchasing power .
An attitudinal shift of the market happens when , positioning
invokes beliefs , establish liking & induce a stimuli for
buying known as tri-component model. .
Tri component Attitude
model: 1 Cognition
2component
Affective Cognition
3 Conation

Conation Affect

96
1.A positive or negative belief ( myth, Superstition, taboo, strong
reference opinion, Right or wrong product/service information
from authentic source ) As consumers hold many beliefs about
a product or service, it is difficult to decide which belief influence
the buyer‟s attitude most.
Hence Multi-attribute ( known as the Fishbein) Model attempts
to summarize overall attitudes into one score using the equation:

For each belief, take the weight or importance (Wi) of that


belief and multiply it with its evaluation (Xib).
For example, if a consumer believes that coffee can help to
overcome metal fatigue by partially energizing ,hence
gives the importance 4 on a scale of1 to 7.

He or she believes that coffee can energize better than tea,


hence
rates 6 on a scale from 1 to 7. Thus, the product here is
4(6)=24.

On the other hand, he or she believes that coffee consumption


is bad for health, hence rates 2.
Coffee has high caffeine content hence bad for health, thus
rates 1 . Now we have 2(1)= 2. Had these two
beliefs been the only beliefs the consumer held, total, or
aggregated, attitude would have been 24+(2)= 26. If required the
scale can be extended from
-7 to +7 .
Since the second belief & evaluation factor is weak, it
Affect . Consumer‟s feeling & emotions associated with the brand.
Consumers hold certain feelings toward brands . These feelings are
based on the beliefs (e.g., a person feels nauseated when thinking
about a hamburger because of the tremendous amount of fat it
contains), but there may also be feelings which are relatively
independent of beliefs.

Behavioral Intention. The behavioral intention is what the


consumer plans to do with respect to the object (e.g., buy or not buy
the brand). As with affect, this is sometimes a logical consequence
of beliefs (or affect), but may sometimes reflect other
circumstances-- e.g., although a consumer does not really like a
restaurant, he or she will go there because it is a hangout for his or
her friends.
The Attitude shift is
for :
1.Utilitarian Function
2.Ego-defensive Function
3. Value-expressive
Function
4. Knowledge Function

5. Utilitarian Function
Favorable attitude towards a brand happens because it has
high usage imagery . Marketers may stress the utilitarian
feature or may suggest uses of the product that may not be
obvious.

2. Ego-defensive Function
Products that we purchase to protect our self-images, to
replace our sense of insecurity with personal confidence.
3. Value-expressive Function
Consumer's express personal values through the brands they
purchase and own .Marketers often attempt to identify their
brands with these values.
“Fairness is a symbol of beauty & helps to gain
success corporate” .

4. Knowledge Function
Consumers feel the strong need to know and understand how the
brand can be put to application or support & justify her decision
of buying .
Attitude change strategies
Change Belief ( Add belief , Change currently held ,
change importance of belief.)

Change Affect

Change Behavior

Approach

1.Comparative advertising

2 Hyperbole statement .

3. Emphasizing Brand Attributes

( USP) 4 Competition based


Attitude & persuasion

Persuasion : A series of psychological processes mediating


perception , comprehension , agreement , retention , retrieval &
decision making using vital cue.

Primary route of persuasion .

Secondary route of persuasion

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Secondary route to persuasion is more acceptable while
evaluating and structuring emotionally based attitude to a
brand as it is possible to affect consumer‟s attitude by simply
changing his convictions after the impact on his emotions.

Communication, directed towards senses will attract


consumer‟s attention which will change existing convictions,
behavior and ultimately attitude. Such conclusions forms an
assumption that the formation of consumer attitude to a brand,
applying secondary route of persuasion is an appropriate
method when the level of involvement in communication is low
as this does not require a lot of effort form a consumer‟s side.
Elaboration Likelyhood model :
( ELM) explains the way the consumer
respond to communications or messages.
According to ELM attitude formation or change process
depends on the amount & nature of elaboration or processing
of relevant information.

ELM is a function of Motivation


Ability to process the message.
Motivation depends on the involvement , personal
relevance, individual needs & arousal levels.
Ability to process depends on knowledge & its relevance &
opportunity to use.

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Temporary Retain original
Message
Attitude shift Attitude
Yes
Yes
Motivated to No Persuasion No
process Cue present
Yes
Ability to
process No ELABORATON
Neutral PROCESS
Cognitive processing

Cognitive structure
Change

Attitude change
change +ive
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Client: Asian Paints
Product: Asian Paints Colour World is the brand name for the
one-stop colour shop of Asian Paints, which are unique paint
shops where shades are generated with the help of a computer
with software to choose and select 1,511 shade combinations,
designed to reach consumers in a direct `dil se' style.

Advertising Objective: Position Asian Paints Colour World


as the „one stop paint shop‟ with all the colours one could
want.
The advertising should create enough interest in potential
consumers to ensure that they come to the Asian Paints Colour
World outlet or at least call the Asian Paints helpline.
Target Audience:
Demographics
Region: India, urban population
Occupation: Service/working professional/self-employed
Gender: Insignificant
Religion: Insignificant
Social class: Upper Middle and upwards
SEC: B and upwards
Family life cycle: Middle aged
Behavioural
Occasions: When looking to paint the interiors of his house
(usually there is an upsurge with new construction and during
festive seasons like Diwali and Holi)
User status: First time user
Loyalty status: Not defined
Readiness Stage: Relatively informed
Attitude toward product: Low-involvement
Attitude toward brand: Trusting, has high-recall value
· Consumer Research.

Consumer research noticed that during the


phase of getting their house painted, consumer
look for just the right shade and are prone to
collecting samples to visually show their
painter exactly what they had in mind. But
always they are unable to express verbally.
Using this insight , the concept of mera
wala pink ,meral wala cream and green was
conceptualized.
Core thought

• Asian paints is about people who invest


emotional energy in creating their homes
• Asian Paints is about homes which
reflect the taste and love of their
owners/residents
Brand Image
Brand image is the collective perceptions of customers
about an organization‟s brand positioning efforts

An organization's positioning efforts create a brand‟s


image by overcoming information clutter, in most cases
minimal interest, and limited mental capacity.

The goal is to produce a “road map” of how and where


the brand fits into a person‟s cognitive framework.
Brand Loyalty :
Brand loyalty is a function of attitudes and
behavior. It is an attitudinal predisposition
favoring a brand and a pattern of purchasing
that brand regularly.
McGuire‟s theory of personality & persuasion .
It focuses two aspects : 1. Reception ( Perception &
comprehension )
2. Yielding ( agreement )
It states that the personality is related to these two
aspects in
opposite way.

The personality trait which increases the reception


decreases yielding.

Attitude change ( AC) is a function of a


multiplicative relationship between reception ( R) &
Yield (Y) .
AC= R X Y .
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Since IQ is one of the important factor for persuasion, higher the IQ in
a consumer the R factor is bound to be high. But the yield is low in this
case because it requires rigorous evidence to influence. Ac= R X 0 = 0
Similarly when the IQ is low, R factor is low since individual finds it
hard to understand the persuasive message . However the yield factor is
high because he is gullible & accepts it easily .

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Very Likely Yielding Reception

Likelihood
Of response
Attitude

Attitude Change
Not likely at all

High
Low

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Central Vs Peripheral Route to persuasion.
Central route to persuasion: When an ad is interesting & relevant
ie the consumer take time to understand it is said to follow a central
route of persuasion. ( strong reason & argument to support & hold
a particular attitude &opinion. )

On the other hand , peripheral route to persuasion implies, very little


or effort to think, involve , or inclination. In such case the attitude
formation towards the brand is on the basis of peripheral clues .
( back ground music , pictures etc. )

Exposure to AD Motivation to Low Peripheral


Elaborate Route
High

Ability to elaborate Central


Route
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FCB Grid used to change the attitude of a buyer
.
Involvement = f ( Personal , situational , Product attribute )

High Product Involvement Low


High Learning Model Low
Cognitive involvement
Affective model
Conative Cognitive
Perceived
Conative
brand
Dissonance Model Affective
differentiation
Conative
Affective
Cognitive
Low
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A research by Wharton marketing & Stanford
marketing professors Cassie Mogilner & J.Aaker
argues that when companies weigh which theme to
be used while communicating the brand to invoke
attitudinal shift in consumer , Time theme over money
theme proved more effective.
Further it was studied to what extend it is linked to
consumer’s personal experience, emotion and identity
, which is responsible for attitudinal shift .
A lemonade stand experiment .

Conclusion of the experiment : Brands can cultivate


consumer relationship by first considering how
consumers identify with the product ( through
experience or possession ) & then highlighting either
the time or money spent accordingly.
Attitude shaping through media communication
Relationship of attitude with communication

Brand
communication

Feeling
Judgment about about
Brand Brand

Benefit analysis
Belief about the
brand

Attitude towards the


brand
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Innovation & diffusion
Diffusion of Innovations is a theory of how, why, and at what
rate new ideas and technology spread through cultures.

An individual or an organization/social system bases the


type of decision on whether an innovation is
adopted/rejected.

The three types of innovation-decisions are: Optional


innovation-decisions, collective innovation-decisions,
authority innovation-decisions.

1.Optional Innovation-Decision
This decision is made by an individual who is in some
way distinguished from others in a social system.( Role
model)
In mid '80s the woman in the Surf Ad got a name - Lalitaji - and was
brought to life on television by Kavita Chaudhary in a TV commercial
with the tag line “ SURF ki Kharidari mai hi Samajdari hai ( It makes
better sense to buy Surf)”. They were fighting a soapy detergent war
against Nirma.
Nirma, in turn, had found an icon of its own in a young little girl
swirling around in a skirt – the Nirma girl. The Ad jingle for
Nirma was the clincher:

“Washing powder Nirma, washing powder Nirma


Dudh si safeedi, Nirma se aaye
Rangeen kapda bhi khil khil jaye
Thoda sa powder aur jhag dher sara
Rekha, Jaya, Geeta aur Sushma
Sabki pasand Nirmaaaa. Washing
powder Nirma. Nirma.”
2. Collective Innovation-Decision
This decision is made collectively by all individuals of a
social system.

3. Authority Innovation-Decision.
This decision is made for the entire social system by few
individuals in positions of influence or power.

Five stages of innovation decision are :


knowledge, Persuasion, Decision, Implementation,
confirmation.
What is What
online motivates
What will What motivates
banking Online
make him him to
banking
try? shift ?

Does it enhance
consumer’s present
Way of doing
things ? Y/N
Knowledge
In this stage the individual is first exposed to an innovation but lacks
information about the innovation. Hence during this stage the
individual has not been inspired to find more information about the
innovation.
Persuasion
In this stage the individual is interested in the innovation and
actively seeks information/detail about the innovation.
Decision
In this stage the individual takes the concept of the innovation and
weighs the advantages/disadvantages of using the innovation and
decides whether to adopt or reject the innovation.
Implementation
In this stage the individual employs the innovation to a varying
degree depending on the situation. During this stage the individual
determines the usefulness of the innovation and may search for
further information about it.
Confirmation: Individual apply the concept to his daily life.
The rate of adoption is defined as the relative speed with
which members of a social system adopt an innovation. It
is usually measured by the length of time required for a
certain percentage of the members of a social system to
adopt an innovation

Adoption Adoption of an innovation follows an


S curve when plotted over a length of
time

Time

Adoption Curve : Due to initial resistance to accept the change


in the daily life, social system will oppose
the innovation , unless innovation is strongly
aspiring ( persuasive motive ) the market to
adopt the innovation.
Hybrid corn was adopted only slowly among many
farmers. Although hybrid corn provided yields of
about
20% more than traditional corn, many farmers had difficulty
believing that this smaller seed could provide a superior
harvest. They were usually reluctant to try it because a
failed harvest could have serious economic consequences,
including a possible loss of the farm.
Agricultural extension agents then sought out the most
progressive farmers to try hybrid corn, also aiming for
farmers who were most respected and most likely to be
imitated by others. Few farmers switched to hybrid corn
outright from year to year. Instead, many started out
with a fraction of their land, and gradually switched to
100% hybrid corn when this innovation had proven itself
useful.
Forces which would work against innovation are :
1. socio cultural ( ideology of the market )
2. financial constraint
3. Technological culture.

Birth control pill is incompatible with strong religious


influences in countries heavily influenced by Islam or
Catholicism .

Electric razor : Indian shaving skill is incompatible with


the dry shaving concept mooted by the product.
The characteristics which determine an innovation's rate of
adoption are:
(1) Relative advantage : It is the degree to which an
innovation is perceived as better than the idea it supersedes.
The degree of relative advantage may be measured in
economic terms, but social prestige, convenience, and
satisfaction are also important factors. It does not matter so
much if an innovation has a great deal of objective advantage.
What does matter is whether an individual perceives the
innovation as advantageous. The greater the perceived
relative advantage of an innovation, the more rapid its rate of
adoption will be.
(2)Compatibility is the degree to which an innovation is
perceived as being consistent with the existing values, past
experiences, and needs of potential adopters. An idea that is
incompatible with the values and norms of a social system will
not be adopted as rapidly as an innovation that is compatible.
The adoption of an incompatible innovation often requires the
prior adoption of a new value system, which is a relatively
slow process.

(3)Complexity is the degree to which an innovation is


perceived as difficult to understand and use. Some
innovations are readily understood by most members of a
social system; others are more complicated and will be
adopted more slowly. New ideas that are
simpler to understand are adopted more rapidly than
innovations that require the adopter to develop new skills and
understandings.
(4)Trialability is the degree to which an innovation may be
experimented. New ideas that can be tried on the phased
manner will generally be adopted more quickly than
innovations that are not divisible. An innovation that is
trialable represents less uncertainty to the individual who is
considering it for adoption.

Role of tryvertising as an execution strategy


building adoption rate ?

(5)Observability is the degree to which the results of an


innovation are visible to others. The easier it is for
individuals to see the results of an innovation, the more
likely they are to adopt it. Such visibility stimulates peer
discussion of a new idea, as friends and neighbors of an
adopter often request innovation-evaluation information
about it.
Other Cultural dimensions influencing to adopt new
products more quickly than others are:

Modernity: The extent to which the culture is receptive to


new things. In Britain and Saudi Arabia, tradition is highly
valued—thus, new products often don’t fare too well. The
United States, in contrast, tends to value progress.
The concept of modern Japanese toilet based on
vacuum driven, deodorized, auto cleaning of base fail to
connect UK market .

Homophily: The more similar to each other that members


of a culture are, the more likely an innovation is to spread
—people are more likely to imitate similar than different
models. Small car concept picked up well in India as
average height of Indian men ranged between 5.5 to 5.8 ft.
The strategy used by the brand owners to induce early
adoption in the market : identify an highly respected
individuals ( Innovators ) within a social network,
creating an instinctive desire for a specific innovation.
Inject an innovation into this group of individuals
who would readily use an innovation, and provide
positive reactions and benefits for early adopters of an
innovation.
The categories of adopters are:
Innovators
Early adopters
Early majority
Late majority
Laggards
The bell shaped curve illustrates the rate of adoption
of a new product. The saturation point is the
maximum proportion of consumers likely to adopt a
product.

(1) Innovators – 2.5%


(2) Early adopters – 13.5%
(3) Early majority – 34%
(4) Late majority – 34%
(5) Laggards – 16%
Cumulative adoptions are reflected by the S-shaped curve.

ATM cards diffused quickly in the market .Retail banking


segment enjoyed the benefit of this in lowered cost of
servicing the client. ( Move from branch banking to ATM
banking ) Since the cards were used in public, others
who did not yet hold the cards could see how convenient
they were. Although some people were concerned about
security, the convenience factors emerged as a decisive
factor in the ―tug-of-war‖ for and against adoption.
The product life cycle (PLC) is tied to the phenomenon of
diffusion of innovation. When a new product comes out, it
is likely to first be adopted by consumers who are more
innovative than others. It is important for a brand to
create innovators since many other later adopters will
tend to rely for advice on the innovators who are thought
to be more knowledgeable about new products for advice.

Revenue

Time
Food for thought

1.Assuming all technical issues with Broadband /Internet


providing TV (Web-TV, Cyber-TV, Cable-TV and so on) have
been solved and there is no regulation elements, will
people adopt to ip TV mode ? If yes, Why ? when?

If packaged tender coconut water is made available by a


leader in FMCG sector to the mass India, will people
adopt? Why ? / Why not ?
Self image .

Self image is composed of the attitudes a consumer


holds towards herself due to internal & external
stimuli .

Life style of a consumer is an outward expression of


one’s self concept.

Life style drives & involves the consumer in buying


decision of a specific brand of product or
service.

Therefore Self image is defined as the totality of


an individual's thought & feeling having
reference to herself or him self .
Research shows that Self image can be
categorized in two levels.
1. Independent Self concept
( Separateness )
2. Interdependent Self Concept.
(Connectedness)

Independent self concept. It is based on the fact


that individuals give more importance to their
personal values & goal, , egocentric ,
autonomous, self reliant & self contained.
Interdependent Self Concept.
It is based on the fact that individuals
give more importance to their society ( family
values , social pressure & social relationship).
Such consumer demonstrate socio centric ,
holistic , connected & relationship oriented
approach in their behavior.
Self Congruity :

Self-congruity represents the degree of similarity between


consumer‟s self-image or self-concept and that of brand. The
degree of consistency between the self-image and brand
image is self-congruity .

The four aspects of self-concept compose the global self-


image, which influence consumer choices of brands through
self-image with brand image congruity.
Self Concept and Brand Self-congruity

Personality as a predictor of self-congruity has a natural


extension of the self-concept/Self-congruity theory because,
both constructs are closely related to each other . Self-concept
is often viewed as a component of personality. Research
shows that there is a positive association between self-
concept and brand image.

The greater the congruity between the human


characteristics that consistently and distinctively describe
an individual's actual or ideal self and those that describe
a brand, the greater the preference for the brand (Aaker).
Self-concept is hypothesized to consist of four components,
actual self-concept, ideal self-concept, social
self-concept and private self-concept .

Within this framework, actual self-concept refers to the


present way in which individuals perceive themselves
(reality), whereas the ideal self-concept represents the
manner in which they would like to perceive themselves.

Social self-concept represents the way individuals believe


others perceive them, while private self-concept represents
the way the individual desires to be perceived by others.
Actual Self concept & Ideal Self concept : Who I
am
now & Who I would Like to Be‖ ( Ideal self concept)
.

Men’s formal brand presently, wants to be a brand


for both men & women .

Private Self Concept and Social Self Concept : How


I want others to see me& how others see me ( Social
Self Concept.)

Brand wants to be known as rugged ,rough & tough.


( Private self)
Market consider brand as mild & meant for occasional
use. ( Social self )
Self concept

Why perception gap, Identity gap, personality


gap & position gap is well understood by
getting the insight of market’s self concept.

Perception Identity
gap gap

Personality Position
gap gap
Measuring Self concept. self concept helps to position
the brand firmly & appeal the consumer.

Mother is perceived to be caring for her children.


5 4 3 2 1
Fully partially Agree Somewhat Donot
Agree agree agree agree

A corporate citizen want to portray professional &


confident in work.
5 4 3 2 1
Fully partially Agree Somewhat Donot
Agree agree agree agree

House wives see washing machine as time saving


appliance
5 4 3 2 1
Fully partially Agree Somewhat Donot
Agree agree agree agree
Self concept is measured using Semantic Differential
Scale. The scale helps to describe ideal, actual, private &
social concepts of an individuals & thus can be mapped
on the image of the brand or useful characteristics in
marketing communication.

Tick which word describes your washing machine most appropriately

Rugged Delicate

Complex Simple

Contemporary traditional
Consumer Personality

An eagle’s egg was placed in the nest of a prairie chicken. The egg got
hatched & the little eagle grew up in the surrounding of a chicken. It
scratched in the dirt for seeds , clucked & cackled. It never flew more
than a few feet. One day an environmentalist saw the eagle with the
chicken & persuaded the owner to let it free . The eagle is not meant
to be on the ground, the sky is it’s world. The owner
said, ― It is doing
what it has learnt from its friend‖. You may try . Let it fly high in the
sky, to never return again . The environmentalist tried , took it high on
a mountain , held up & said the sky is your world go .
The eagle flew a few meters & came back on the ground. In spite of
repeated attempts the eagle could not fly.
He brought it back & put it back with the chicken. It flapped its wings
& got back to the dirt's to find the seeds to feed itself.

What is the moral of the story ?


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Origin of personality Personality Behavior
development
Genetic
Determinants

Parental
Determinants Development of Individual
Stable personality differences
Experimental Characteristics. in behavior
Determinants

External
Determinants based
on social, cultural
Race, religion etc.
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Consumer personality

Motivation Self image


Perception

Temperament
Learning Behavior
Attitude
Consumer tries to see her personality through the
brand she owns & justify the reasons for owning it.
If brands fail to communicate the personality to the
target audience, it will find difficult to attain the position
in the mind of the consumer.

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The commonly referred personalities types are :

Innovative type : Consumers are attracted to new types of


product & service & also whenever the existing product is
modified & marketed the innovative type gets attracted to it .
Eg Mobile, Multimedia desktop, laptop . Hotel service,
tourism service. Etc

Dogmatic Type : Consumer prefers to stay with tested product


& shrinks away from unfamiliar & new product.

Inwardly directed : Buying decision is more based on self


thinking.

Outwardly thinking : Consumers are excited to buy when he/she


is told that many others are doing so.
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Personality can be defined as the consistency of interaction
towards a person‟s external and internal stimuli (Fiske).

Research background :

Thurstone conducted psychological factor analysis of 60


personality terms & came up with 5 common factors.
Cattell
followed Thurstone‟s method & came up with a more complex
set of personality variables, known as 16 Cattell Personality
Factors (PF). Other researchers, including Fiske and Digman,
did a follow up study by analyzing Cattell‟s 16 Factors and found
out that only 5 factors are proven to be replicable across
different context . This research, gave birth of „Big Five‟ in
personality theory.. The Big Five theory has been tested across
different cultural contexts and considered as one of the most
systematic and reliable personality constructs.
The Big Five Model explains individual differences using a
trait analysis approach. “Big Five” personality test is
regarded as Dimensional/Galilean rather than
Categorical/Aristotelian
approach. The Big Five aims to explain individual differences based
on several dimensions rather than putting people into boxes of
personality categories, which enables researchers to examine
individual differences based on different trait factors.

Factors considered in BIG FIVE MODEL:


(1)Neuroticism : It assess an individual‟s prone to psychological
distress, unrealistic ideas, excessive cravings or urges, and
maladaptive coping responses. A person who has high score in
neuroticism dimension is considered unstable and emotional.
(2)Extraversion: It assesses an individual‟s quantity and intensity of
interpersonal interaction and activity level. A person who scores
high in extraversion dimension is likely to be adventurous and
energetic .
The high scorers tend to be sociable, active, talkative, person-oriented,
optimistic, fun-loving, and affectionate.

(3)Openness : It assesses an individual‟s proactive seeking and


appreciation of experience for its own sake, toleration for, and
exploration of the unfamiliar. The high scorers tend to be curious,
creative, original, imaginative, and untraditional.

(4)agreeableness : It assesses an individual‟s quality of interpersonal


orientation along a continuum from compassion to antagonism in
thoughts, feelings, and actions. The high scorers are likely to be soft-
hearted, good-natured, trusting, helpful, forgiving, gullible, and
straightforward.

(5)Conscientious : It assesses one‟s degree of organization,


persistence, and motivation in goal-directed behavior. The high scorers
of this dimension tend to be organized, reliable, and hard working.
In Big Five construct , consumers are grouped into 5 dimensions. Scores
on NEO PI-R (Neuroticism-Extraversion-Openness Personality
Inventory Ratio) determines where each consumer is positioned, a
person can be positioned into more than one dimension. In the
questionnaires consumers‟ are asked to rank themselves in each
dimension and calculate the score for each dimension. In the marketing
context, researchers are interested to find out significant dimensions of
consumer personality. The way „significant‟ is defined in The Big Five
as the dimension in which the participants score the highest. There is no
rule of thumb concerning the number of dimensions that can be taken
into account in marketing, however, for the purpose of this study, 2
dimensions are considered the maximum number to be included in the
model in order to classify respondents into specific personality cluster
which best describes their personal characteristics.
Life style models

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Life style study of a consumer involves his attitude ,
Values , Demographics , life stage etc . Following
models explains the concept of life style from different
perspectives.
VALS

 AIO Model

Monitor Mind Base

Geo-Demographic Analysis ( PRIZM)

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VAL 2 Segments
Enjoy the
Most resourceful Inner thing,
Receptive to new product
Technologies

Actualizer
Pr inciple oriented Status oriented Action oriented
Attracted to premium Follow fashion
Less interested in products & Fad
image & prestige
Expereincer
Achievers
Fulfilled

Slow to change Image conscious , Shop for comfort


, habits, look for s limited , willing try
bargain income c
Mhanag
Believer Striver
ke.er

Need driven Struggler


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Monitor Mind Base
Life style developed based on Value, Life stage &
motivation . It combines an individual’s position on a set
of core values with life stage & motivation.

The values are : Materialism Material pleasure . (one’s


own pleasure )
Technology Orientation
Family Values
Conservatism
Cynicism versus
Optimism Social interaction

Accordingly the segments are :

Up & comers (Aspiring Achievers )


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Realists: Constrained & strive to balance their needs.

New Traditionalist : Involved in community & family oriented


. Success comes from good marriage & healthy kids .

Family Centered : Not interested in social issues & self


exploration.

Individualist : Driven by technology & success at work .


Devoid of family & kids .

Renaissance Masters: Family & community oriented


people.

Maintainers : Use past as a point of reference . Resource


constrained, lead traditional content life .
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Prizm : Life style & consumption is largely driven by
demographic factors . People with similar cultural
background , means, perspective gravitate toward
one another. The model is widely used in U.S for
consumer segmentation. GM, BMW , Hertz etc

Life style clusters are :


1. Furs & station Wagon : Well educated , mobile
professional
, big spenders, expensive neighborhood.

2.Blue chip Blues: High school education & blue collar


occupation , fewer high end incomes & low home values.

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Global SCAN : Similar life style in different cultural
surrounding leads to multiple consumer
segments.

1Adapters

2Strivers

3Achievers

4Pressured

5Traditionalist
Affluent, assertive
& opinion makers

Achiever
Materialistic pleasure , Strivers
success oriented, Older crowd .
Adapters Content with
short of time
what they have
Traditionalist Pressured

Old value people ( Downtrodden people with more of


conservative , tied to past. problems, economic & Family )
Consumerism & Consumer protection

Responsibilities of Marketer & Consumer


protection.

•Fair Media communication :

•Compliance to Social norms

•Avoid Unethical marketing activities.

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Exploitation of the consumer by the business
community through unfair means & practices
have led a movement called consumerism.

Reduce 10 Kg weight in 20 days


Increase you height by 2 inch in 15 days
Change your complexion in 3 weeks
Remove all marks in 6 weeks.

Protect the consumer from unlawful activities or


communication which are misleading & exploit
them is referred as consumer protection .
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Consumer protection Act 1986 : A legal umbrella
to protect the interest of the consumer & speedy &
cheap justice.
It provides compensation to consumers , penalties
to non compliance of the rules by the marketers .
Under the CPA 1986 , the consumer has :
 Right to information
 Question the marketer on charging of Unfair
prices
 Statutory & mandatory disclosure
 Protection against hazardous goods.
 Right to consumer education
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The policy making body under consumer protestation act is
central consumer protection council & State consumer
protection council.
The body is equally responsible for effective implementation
of the Policies.
Central cabinet Minister -Food & Civil supplies is the
chairman of the central council & same is the case at the state
level.

A consumer complaint can he lodged in :


District forum , ( Jurisdiction up to 20
lacs ) State forum
(Jurisdiction up to 20-
100 lacs ) National forum .( Value
more than >100 Lac )
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Any consumer can approach district consumer
redressal forum if he has been cheated by the marketer
in terms of product delivery & service .

Any claim or the value of product & service up to 20


lacs can be handled by district forum .

A consumer must lodge his complaint within 2


years .

He may appeal to state redressal forum if not satisfied


with the decision.
Not an End , but a nimble footed beginning
in the corporate ocean ,
If sharks are unavoidable , Learn to live
with it ,
Craft your own destiny where ,
You may not be important to everyone ,
But you may be special to some
one.
The Consumer is isn’t stupid , She is your
Boss. ……………Ad Guru David Ogilvy

It is no surprise that media must try open


the minds of these consumers digging
deep into their thinking & feeling patterns ,
so that they can shape communication to
achieve the desired behavioral response.

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A McKinsey report predicts a glittering future for
Indian consumers & explosive growth in Indian
Consumer spending .

According to the econometric model the middle class will


balloon leaving less than 18% in the lowest income
category . Today 47% of house hold are in middle class
segment , which was jus 20% five years ago. ( BIG
BUSINESS OPPORTUNITY )

The middle class segment will grow to an impossible to


ignore segment ( 583Mn ) in next ten years. It will control
51.5 lac Crore spend , 11 times increase from the present.
( BIG BUSINESS OPPORTUNITY )
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According to ACNielson global Consumer
Confidence & opinions survey 06-07 , Indian
consumer leads the rest of the Asia pacific
countries , remarkably upbeat about the spending
on various segments.
Business opportunities in Retail, Real estate,
Telecom, Financial services , Tours & travels,
Education, Wellness etc are on the verge of
exploding.
However the brand managers of the
organization are unable to see the skyrocketing
sales & serpentine queue of consumers
in the store .
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Classification of cities & Town

4 Metros , Bangalore 1.Major cities


Hydrabad , Pune > 100 bn total income
Tier –I
Ahemdabad 8cites
2.Main stream
Tier –II Cities
26 cities

Tier -III 3.Climbers


33 cities
Tier -IV 4.Small
5093 towns Towns

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Consumer behavior study help to probe the
deep recesses of the consumer mind where the
needs are still not articulated. It helps to get
deeper in to the MIND & HEART of THE
CONSUMER get more insight & angles which
helps the organization to understand how they
THINK & FEEL about the brand /product /
service rendered. This creates a desire to buy &
involve with the brand .

It helps to build a life time customer value for


the organization, which is an intangible
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Customer Value & Purchase Involvement
Value drives satisfaction
Satisfaction is a necessary condition for customer loyalty, but not
a sufficient to create loyal customers, customer excellence &
delight.

Value = Benefits ( Functional Benefit + Emotional Benefit)

Cost ( Monetary +Time+ Energy+ Psychic Cost)

Customer perceived values in a product or services are :

Functional Value
Emotional Value
Social value
Situational /
Epistemic
ConditionalValue Not for circulation : for internal 182
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Customer Value & Purchase Involvement
Value drives satisfaction
Satisfaction is a necessary condition for customer loyalty, but not
a sufficient to create loyal customers, customer excellence &
delight.
Delivering value to the customers is a key to achieving organizational
goals by being more effective than its competitors in creating , delivering &
communicating customer value to the identified set of consumers in the
market .

What is value?

Value =
Benefits ( Functional Benefit + Emotional Benefit)

Cost ( Monetary +Time+ Energy+ Psychic Cost)

What is customer delivered value ( CDV) ?

It is a difference between Total Customer


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Cost
Value(( CTC)
TCV) only &
Determinants of CDV

Monitory Time Energy Psychic


CTC cost Cost cost
Cost
CDV
TCV Product Service Emotional Image
value Value Value Value

CDV builds customer delight . It is a difference between


the perceived performance ( Out come ) &
expectation.
If the performance falls short of expectation, it leads to dissatisfaction.
On the other hand if it matches the expectation it leads to satisfaction.
When it exceeds expectation, it becomes Customer delight .

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Customer Loyalty Program

CEM CTM (Customer touch point Management )

Enhancing customer Touch point during :

 Purchase touch point


 Post purchase touch point

To increase the mind share of the customer with the brand.

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Influencing buying decision in a consumer

Cognitive Feedback
factor
Individual Decision
CONSUMER Response
factor making

Personal
characteristics Environmental
factor

Culture Social class Influence group Situational


variable

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Buyer‟s characteristics are influenced
by
Cognitive Personal cultural social Influence Situational
factors factors factor factor groups variables

Perception Demographics Values Social Reference point of


& class groups purchase
Attitudes Life style Belief & Family Market
Structu communication
re
Motives Personality Cross Societal Opinion leaders Display
& Need traits cultural belonging Innovation Store
Influences & trend Patronage
Self concept Sub cultural setters Price
influences

All above factors influence a consumer‟s buying decision.

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Buying Decision process

Input
Stimuli

Motivation Attitudes, Personality, Perception

Need Information Evaluation Purchase


recognition search Of alternatives Decision

Post purchase
Behvaiour

Output
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Consumer‟s behavior is studied from the point of view of :

1.Consumer as an individual :

Consumer behavior study as in individual involves


motivational drive ,its measurement , needs & wants &
types of need . Self concept, attitude , perception,
consumer imagery

2Consumer in his social & cultural setting :

It involves cultural influence, sub culture , cross culture ,


( nationality, religion , etc ) psychographic [ life style ] ,
Social group, reference group , geo demographic clustering
etc.

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Values : Values are formed at much early in age ,at home or
school & are the deep rooted . While all values have its own
negatives & positives, it can rarely be changed .

Ritual & heroes fall between the deepest & superficial


manifestation . Heroes are people ,alive or dead or imaginary
serving as a role models of the behavior.

Rituals are ways of socially greeting, social & religious


ceremonies . A traditional marriage ceremony, being
followed with out questioning it.

Culture strongly influence the decision making behavior of a


consumer.

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Psychographic profile
It is a combinations of Social group, sub group,
attitude, perception, opinion , interests life style
. Value & life style ( VAL Model ) & Activity ,
Interest & opinion ( AIO) inventory helps to study
the psychographic profile of a consumer .

VAL model classifies the consumer in the


following categories on the basis of Value & life
style .
1Actualizer , 2 fulfilled, 3Believer, 4
Achiever , 5Striver, 6Experiencer,
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7Maker 8 Struggler use only
Personality classification done on the basis of Psychographic
segmentation of Indian Women & Youth done by a research
organization.
CLASS Behavior
Miss Sophisticate : Tries out new & trendy products .Upward mobile
group.

Traditionalist : Stick to the brands which gives comfort.


Troubled home baby : Unwilling to spend extra for comfort & pleasure .
Compromising nature . Evaluate Price performance
Ms up to date : Do not compromise on life style . Willing ness to change
when required.
Ms nonsense : Believes cheapest products gives hive material value. Do not
believe in branded products.
Conservative : Learn to manage with what is in in deposition. Spending
money
Gregarious hedonist
is a bad: habit
Spends for social cause , strong religious belief ,
custom .
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Youth classification : Behavior

Cultural misfit : Carried by strong belief . Unwilling to


Style Bhai
change : Believes in experimenting new things.
Appearance conscious. Shows high
change.degree of
Middle class Manju : Typical family oriented & Price conscious,
spending on entertainment , life style
products is
Main Bhi NRI : bad habit.
Adapts to new culture fast . Can be
easily influenced. Life style conscious.
Trend setters
Rich Brat : Willing to spend for luxury , comfort ,even if
it has short lived usage .
Nerdy Nandu : Time constrained youth . Always behind
trend & clue less. Wiling to do any thing to
climb the ladder of success.
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VAL( Value & Life style Classification ) System . ( developed by
Arnold Mitchell)

The system was developed to explain the dynamics of societal change in the buying
behaviour of a consumer . Accordingly consumer responses were collected for 35
attitudinal & 4 demographic questions. On the basis of these responses consumers
were classified in eight distinctive sub groups. Each group signifies a behaviour
response pattern ( life style ) & inner psychological needs ( Value )

It acts as a dynamic frame work of values & life styles which helps to explain why
people have a explicit behaviour

Eight VAL segments are :


Actulizer Experiencer

Fulfilled Maker

Believer Struggler

Achiever

Striver
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VALS type model used by Unilever .

Food benefit frame work created by comparing key


benefits in different categories are :

Confidence , Time saving , Health , pleasure , Mental


management , Caring ( family/world ) Fun, socializing

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Indicator

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only
AIO MODEL
Activities Interests Opinion Demographics

Work Family Themselves Age

Vacation Entertainment social occupation

Sports Achievements Culture Dwelling

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Family life cycle & buying role.

Family plays an important role as a social group influencing


consumer’s behaviour. The influence is either as face to face
( primary group or as reference group ( values, norms, living standard
etc)
Understanding of family Life cycle
( FLC)

FLC: A composite variable created by systematically combining commonly used


demographic variables like : size of the family, martial status age earning
members
, disposable income etc.

FLC is studied from the view point of :


 Bachelor hood status
 Married couple
 Parent hood
 Post parent hood
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 Dissolution
Post parent hood is classifioendly in to Empty nest 1
Attitude, Interest & opinion of a consumer projects his life style.

Demographic & psychographic segmentation is important for


ultimate market segmentation as psychographics provides insight in
to the consumer segment ( life style ) while demographics helps to
locate& target the market segment .It helps to look at wide variety
of variables & measures the major dimension .

Feldman & Theibar explains life style by the


following characteristics:

1 Life style is a group phenomenon . It is influenced by his/her


participation in social groups & individual personality
( attitude , emotional status driven by beliefs & values )

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2Life style implies a central life interest . The central life implies
interest factors like family, work , leisure , religion , politics ,
sexual exploits

3The rate of social change in a society has a great influence on the


life style. Age , gender , religion ethnicity & social class . Eg Dual
income class , nuclear family High earning potential in early age
& late working hours .

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Cultural & societal variables establish the outer boundaries of
life style specific to culture . The interaction of the group &
individual expectations & values create a systematic pattern of
behaviour.
This life style pattern determines the purchase decision.

Life style refers to the way in which people live & spend money .
Consumer psychographic profiles are derived by measuring
different aspects of the consumer such as :
Activities , Interests & opinion referred as AIO
inventory Activates : How one spends his time .
Interest : One‟s priorities & preferences.
Opinion : How one feels about the varieties of thing.
Activities , interest& opinion (AIO inventory) helps to link
wide variety of variables & measures the major dimension on
the life style of a consumer
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Identified three self orientations.
1. Principle Oriented : Guided by the beliefs & principles.

2. Status oriented : The individuals are heavily


influenced by actions approvals & others opinion.

3. Action oriented : Desire social & physical activity variety


& risk taking .

VAL 2 divides the consumer in three distinct groups, which determines the
life style, attitude & decision making .
All eight segment differ in their resources & orientations.

Makers : Action oriented category, possess skills & value self sufficiency.

Striver : Status oriented category , but have low income. Strive to build
secure place & position in life.
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Relationship between Self concept & Brand Image

Brand
Image

Market Satisfaction
Relationship Communication Acceptance
Loyalty
Consumer Brand
Self image
Concept
Reinforce Self concept.
CONSUMER LEARNING

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Consumer behavior models having relevance on
decision making process.

1. Classical conditioning
2. Operant conditioning
3. Behavioral Learning

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Cognitive factors which affect the classical conditioning process
are:
Consumer characteristics. Impact of visual stimuli depends on the
the consumer‟s ability to visualize the creative message. Over
creative ads loose its impact when not understood by the consumer.
Further non visual stimuli ( jingle) has different experience with
different consumer . Hence it can result in negative and positive
learning experience .

Stimulus characteristics. : Known stimuli is avoided as pre exposure


of stimulus reduces the impact on the consumer.
Eg Sales promotion techniques like discounts , gold coin , lottery etc

Blocking association :
A brand ambassador (stimuli ) having connection with a particular
brand or product when used with another , consumer gets mentally
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Operant or instrumental conditioning .( Skinner theory)
A learning in which the consequences of behavior lead to
changes in the behavior pattern

conventional Partner Criticized Weakening of


blade ( punishment) Behavior
( Negative
action)
Gillete partner Admired ( Reward ) Strengthening
Sensor Smooth shave of behavior
Positive
action
Mach -3 No comment ( No reward) Neutral . No
Change

Behavior shaping : Rewarding the consumer in consequence to the


desired behavior.
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Observational learning : Positive Behavior result only when
the optimal use of the product is demonstrated .
The Ad makers have to communicate through creative usage of
the brand /product for the consumer to imitate the person doing
it.

Selection of Brand ambassador :Eg Sanjeev Kapoor for masala ,


Personal care products. House wives for consume durable products.

Advantage : High imitation ,

Observational learning helps to build :


High attention positive learning Desired Reward( learning)
behavior

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Repetition enhances the association of Stimuli to response.
Effectively used in creating subliminal approach.

Technology posing threats to subliminal approach.

Zipping ( FF) Zapping( CC)


& Filtering

REALITY : More than 60% TVC are zapped.

Preventing zipping , zapping & filtering

1. M‟c Erikson study: Made AD more entertaining


2. Ad creating which catch attention of people for
active search.
3. Leave information of practical value (Domestic
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FCB grid helps to make advertising planing process based on the
consumer - product relationship & develop appropriate promotional
strategies. An effective creative options like rational versus
emotional appeals are the strategies , creative AD maker can
develop using FCB grid.

High envelopment & Thinking


Consumer is Informative thinker , Search for economic value
Strategy used : Specific / to the point information
demonstration , dissemination . Build high recall .

High involvement & feeling .


Consumer is driven by psychological ( feel-learn-do) emotional
drives. Eg: Fashion & fad products.
Strategy used: Emotional arousal , bring Attitude change

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Low envelopment & Thinking

Consumer is non responsive to market communication


Strategy : Inculcate do-learn-feel habit ,Sales Promotion tactics to
induce buying habit.
Small space ads, More Point of Sales POS materials are
used . Frequent reminder

Low involvement & feeling .

Consumer has strong emotional bonding addition to a brand ,


product . Unwillingness to change. Eg : Alcohol ( liquor) Tobacco
etc.
Strategy : Build do-feel-learn habit . Creative strategies like
consumer Mentoring , strategic sales promotion etc.

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Stimulus Generalization : The stimuli similar to a
conditioned stimulus will elicit a similar response without
prior learning.

Umbrella branding ( Family Branding ) Ariel green, Micro


shine Super soaker etc Or Godrej No1
soap , Godrej refrigerator etc

Product line extension : Lux beauty soap, Lux beauty liquid soap,
face wash etc.

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Post Purchase behavior study of a consumer

Why post purchase behavior is important for the consumer?

It gives the marketer the feed back on the performance of the
product or service offered.

 Customer expectation versus actual performance of the


offer.

 Causes of dissatisfaction.

 Marketing initiatives to build customer delight.

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Decision phases of customer.

1. Pre purchase Phase : Problem recognition,


Information search.
Evaluation of alternatives.

2. Purchase Phase Situational influences.


Experience upon consumption

3 Post purchase phase After sales support &


service. Recurring cost.
Protection against product obsolesce
( Loyalty programs )

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Degree of customer satisfaction.
 The satisfaction of customer depends on the degree of gap between
his expectation & performance.
If the difference between the expectation & actual performance is
high dissatisfaction level is high
 If the difference between the expectation & actual performance is
nil ,
then the satisfaction level is high.
If the actual performance of the product or service far exceeds the
expectation, then it takes the form of customer delight or
customer excellence.
Expectation by Expectation by
The customer The customer
Satisfaction
Dissatisfaction Product performance >
Customer expectation
Performance by Performance by Customer delight
the product the product
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What are the consequences of dissatisfaction ?

 Discontinued purchase ( No repeat buying )

 Negative word of Mouth

 Litigation in the consumer court

 Brand image of gets tarnished.

 Cease of Loyalty

 Premature death of the brand

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Cognitive personality : There are 2 types of cognitive
personalites.

Visualizer : Prefer to buy on the basis of visually attractive


information . They retain visual memories. Minute
details are of less relevance.
Verbalizer : Attracted to written or verbal information, they
prefer detailed information & keep the factual details &
recall while decision making.

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Type theory

Psychological theory shows that differences in consumer result due


to different type they belong to .

1. Where they prefer to focus their attention.


( Extraversion, Introversion)

2.The way they prefer to take the information


(Sensing or intuition )

3.The way they prefer to make decisions


(Thinking or feeling )

4.How they orient themselves to the external world .Do they


use the judging process or perceiving process.
(Judging or perceiving )
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Characteristics :
extraversions.
Prefer communicate by talking
Breath of interests
Tend to speak first , reflect
later
Take initiative in work & relationship
Learn best through doing or discussion.

Introversion.
Drawn to their inner world.
Learn best by reflection , mental practice .
Prefer communicate by writing
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Sensing .
Focus on what is real & actual
Value practical application
Observe & remember ,Present oriented
Want information step by step
Trust & experience

Intuition

Focus on big picture , possibilities


Value imaginative insight
Abstract & creative ,See pattern
& meaning in facts .

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Thinking .

Analytical , logical problem solver


Use cause & effect reasoning
Tough minded ,Reasonable
Fair

Feeling

Sympathetic ,Assess impact on people


Guided by personal values , Tender hearted
Strive for harmony & individual validation
Compassionate , Accepting
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Judging .

Scheduled ,
Organized ,
Systematic ,
methodical Plan ,
Like closure –to have things decided
Avoid last minute stress.

Perceiving

Spontaneous,
Open ended ,
Casual, Flexible, Adapt
Like things loose & open to change
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Feel energized by last minute
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Consumer type is decided based on these factors.
The types are :
ISTJ Introverted sensing with extraverted thinking
ISFJ Introverted sensing with
ESTP extraverted feeling Extraverted sensing with
ESFP introverted thinking extraverted sensing with
INTJ introverted feeling Introverted intuition with
INFJ extraverted thinking Introverted
ENTP intuition with extraverted feeling Extraverted
ENFP intuition with introverted thinking
ISTP Extraverted intuition with introverted feeling
INTP Introverted thinking with extraverted
ESTJ sensing Introverted thinking with extraverted
ENTJ intuition Extraverted thinking with introverted
ISFP sensing Extraverted thinking with introverted
INFP intuition Introverted feeling with extraverted
ESFJ sensing Introverted feeling with
extraverted feeling
ENFJ extraverted intuition.
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fo r cir c ul a ti on : fo r i nt ern a l u s e
Type theory

Psychological theory shows that differences in consumer result due


to different type they belong to .

1. Where they prefer to focus their attention.


( Extraversion, Introversion)

2.The way they prefer to take the information


(Sensing or intuition )

3.The way they prefer to make decisions


(Thinking or feeling )

4.How they orient themselves to the external world .Do they


use the judging process or perceiving process.
(Judging or perceiving )
Not for circulation : for internal use
only
1. ISTJ : Serious , quiet, practical, orderly , logical , make up their
mind , as what they want to do , regardless of the external
message .
2. ISFJ Loyal , considerable , concerned with how others feel
Emotion oriented.

3. INFJ Highly principle oriented.Driven by their vision .

4.INTJ Driven their by their own ideas. Skeptical , critical &


independent

5.ISTP Cool onlooker , detached curiosity , interested in cause &


effect , logical principles . Drive to the core of the problem before
taking decision.

6. INFP Quite observer. Balance between outer life & inner


values.
Not for circulation : for internal use
8. INTP :Logical & analytical Have a very clearly
defined preferences Not willing to change
easily.
9.ESTP Spot decision makers . Enjoys as it comes in the way. Not
long term planers or thinker.
10. ESFP : Practical & situational decision makers

11.ENFP Warm , imaginative , takes decision which interest


them. Finds reason for that ever they want.

12.ENTP Quick & alert . Develop logical reasons for what


they want to buy
13. ESTJ : Realistic fact driven , rational approach.
14. ESFJ : warm hearted, emotional .driven by life style status.
15. ENFJ Responsive, sympathetic , regard for other‟s
feeling, Emotional driven decision.
16. ENTJ Frank , Out spoken, rational , straight forward.
233
Application & value orNieotnfotrecdirc .
only ulation : for
Consumer segment & type is decided using a structured focused
questionnaire,
The questionnaire is based on :

1 Product related / non related attributes features functions .

2. Functional experiential & symbolic benefits

3. Psycho factors . Where they prefer to focus their attention.


The way they prefer to take the information
The way they prefer to make decisions
How they orient themselves to the
external world .

The information is collected for a large sample differently on the


above three categories & analyzed together.

Not for circulation : for internal 234


use only
Characteristics :
extraversions.
Prefer communicate by talking
Breath of interests
Tend to speak first , reflect
later
Take initiative in work & relationship
Learn best through doing or discussion.

Introversion.
Drawn to their inner world.
Learn best by reflection , mental practice .
Prefer communicate by writing
Depth of interest Not for circulation : for internal 235
Private & contained use only
Sensing .
Focus on what is real & actual
Value practical application
Observe & remember ,Present oriented
Want information step by step
Trust & experience

Intuition

Focus on big picture , possibilities


Value imaginative insight
Abstract & creative ,See pattern
& meaning in facts .

Future Not for circulation : for internal 236


use only
Thinking .

Analytical , logical problem solver


Use cause & effect reasoning
Tough minded ,Reasonable
Fair

Feeling

Sympathetic ,Assess impact on people


Guided by personal values , Tender hearted
Strive for harmony & individual validation
Compassionate , Accepting
Not for circulation : for internal 237
use only
Judging .

Scheduled ,
Organized ,
Systematic ,
methodical Plan ,
Like closure –to have things decided
Avoid last minute stress.

Perceiving

Spontaneous,
Open ended ,
Casual, Flexible, Adapt
Like things loose & open to change
Not for circulation : for internal 238
Feel energized by last minute
use only
Consumer type is decided based on these factors.
The types are :
ISTJ Introverted sensing with extraverted thinking
ISFJ Introverted sensing with
ESTP extraverted feeling Extraverted sensing with
ESFP introverted thinking extraverted sensing with
INTJ introverted feeling Introverted intuition with
INFJ extraverted thinking Introverted
ENTP intuition with extraverted feeling Extraverted
ENFP intuition with introverted thinking
ISTP Extraverted intuition with introverted feeling
INTP Introverted thinking with extraverted
ESTJ sensing Introverted thinking with extraverted
ENTJ intuition Extraverted thinking with introverted
ISFP sensing Extraverted thinking with introverted
INFP intuition Introverted feeling with extraverted
ESFJ sensing Introverted feeling with
extraverted feeling
ENFJ extraverted intuition.
Nwot
only
239

fo r cir c ul a ti on : fo r i nt ern a l u s e
1. ISTJ : Serious , quiet, practical, orderly , logical , make up their mind , as
what they want to do , regardless of the external message .

2. ISFJ Loyal , considerable , concerned with how others feel Emotion


oriented.

3. INFJ Highly principle oriented.Driven by their vision .

4. INTJ Driven their by their own ideas. Skeptical , critical & independent

5.ISTP Cool onlooker , detached curiosity , interested in cause & effect , logical
principles . Drive to the core of the problem before taking decision.

6. INFP Quite observer. Balance between outer life & inner values.

7. ISFP Retiring , sensitive & emotional, not planing for long term .

Not for circulation : for internal 240


use only
The Power of Reference Groups
Sadly, people will often do things in groups that they'd
never do alone, think about lynching
Types of Power
1 Referent
2 Information
3 Legitimate
4 Expert
5 Reward
6 Coercive
Power of Reference Group

WOM Conformity

Opinion Leaders
Market Maven
Surrogate Customer
Socio metric Methods
Diffusion of Innovation
Q1: Discuss the intimate relationship in marketing between
brand
communication strategy, IMC & Consumer behavior
study.
Q2.Discuss the implication of Classical conditioning in shaping
the behavior of market with an appropriate example.

As central , state government bodies and NGO’s started


giving importance to public health care system , an
entrepreneur saw an opportunity to market high
performance AIR PURIFICATION product. A product
which would keep public urinals ,wash rooms in
hospitals, hotels ,commercial places , Morgues , Cold
storage warehouse , Corporation market like fish , poultry
, Meat etc odor free & kill germs and bacteria causing
harm to health of public. The product had indirect
competition from exhaust fans , phenyl , aerosol cans &
other air fresher used to overcome the issue.
The basic idea of the product originated from the fact
that mass community give little attention to maintain
hygiene & wellness of their surrounding and lack of
in-sufficient use of water in public toilets , poor
hygiene practices, poor maintenance of public health
care system , poor plumbing methods , offensive odor
,bacterial growth, low cost solution to prevent stench
etc.
To address the above need , electrically operated air
purification lamps was conceptualized .The product
helped to kill all volatile organic compounds which
causes stench & micro organism such as bacteria,
virus, protozoa etc. However the market’s willingness
to accept the product concept will depend on an
effective communication strategy which would motivate
the segment.
Using hofstede Model create a framework for market
communication .

Identify the behavioral barrier marketer need to


overcome to make the communication effective.

Suggest an appropriate IMC strategies.

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