Professional Documents
Culture Documents
2 Consumer behavior ( A
strategic Approach )
Dr Henry Assael
Create DIFFERENTIATION
( USP)
Overcome Commodity
image
Eliminate
Create Mind base PRICE WAR
Positioning
Trail 20%
Preference 25%
Linking 40%
Comprehension 70%
90%
Awareness
CONSUMER BEHAVIOR STUDY & MARKETING
COMMUNICATION
Build / Create Dominating or
self expressive brands.
SAMPLE FRAME
SAMPLE SIZE
SAMPLE UNIT
DATA COLLECTION
QUESTIONAIRE
DESIGN
DATA COLLECTION APPROACH
DATALANSYSIS
Consumer Power & Shifting trend in
business
Frequently re assesses
3 Deliberative purchase decision . Re
Customer loyalist confirm the brand chosen
Meets the desire & function
Time
Cost
LCC
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.
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 :
29
for internal use
Learning Model.
Consumer Learning : A process by which a consumer acquires
the purchase & consumption knowledge experience which apply to
his future behavior . .
Conditioned stimulus
(Pavlov’s experiment of classical conditioning
)
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
Friend circle
Internal &
external
search Of
alternate
evaluation
Post purchase Purchasing
evaluation Process
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Consumer Segmentation
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.
3 Stealth Parenting
4. Authoritarian Parenting
4. Authoritarian Parenting
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
use only Maa
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
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.
Consumer
Satisfaction
Income
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
SYMBOLS
COLORS
NUMBERS
What is
Semantic
&
symbiotic
culture ?
Nationality legal
barrier SUB Cultural
Cast influenceLanguage
Ideological
system
Organizational
system
Ethnic Religious
Value Practice
Family values
Hush Hush Culture
Psychological mediation
LBS RBS
Sensory stimuli
• Signal detection
• Just noticeable differences (JND’s)
• Subliminal perception
• Sensory adaptation
• Selective attention
Merlyn : Wao ! What a position ?
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
Pepsi 23%
coke 65%
equal/can‟t say 12%
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
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:
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 .
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.
Likelihood
Of response
Attitude
Attitude Change
Not likely at all
High
Low
Brand
communication
Feeling
Judgment about about
Brand Brand
Benefit analysis
Belief about the
brand
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:
3. Authority Innovation-Decision.
This decision is made for the entire social system by few
individuals in positions of influence or power.
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
Time
Revenue
Time
Food for thought
Perception Identity
gap gap
Personality Position
gap gap
Measuring Self concept. self concept helps to position
the brand firmly & appeal the consumer.
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.
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
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.
Research background :
AIO Model
Actualizer
Pr inciple oriented Status oriented Action oriented
Attracted to premium Follow fashion
Less interested in products & Fad
image & prestige
Expereincer
Achievers
Fulfilled
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
Functional Value
Emotional Value
Social value
Situational /
Epistemic
ConditionalValue Not for circulation : for internal 182
value use only
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)
Cognitive Feedback
factor
Individual Decision
CONSUMER Response
factor making
Personal
characteristics Environmental
factor
Input
Stimuli
Post purchase
Behvaiour
Output
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Consumer‟s behavior is studied from the point of view of :
1.Consumer as an individual :
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
Fulfilled Maker
Believer Struggler
Achiever
Striver
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VALS type model used by Unilever .
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.
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
1. Classical conditioning
2. Operant conditioning
3. Behavioral Learning
Blocking association :
A brand ambassador (stimuli ) having connection with a particular
brand or product when used with another , consumer gets mentally
blocked from making an Naost fsoor cciricaultatiioonn: f.or 213
only
Operant or instrumental conditioning .( Skinner theory)
A learning in which the consequences of behavior lead to
changes in the behavior pattern
Product line extension : Lux beauty soap, Lux beauty liquid soap,
face wash etc.
It gives the marketer the feed back on the performance of the
product or service offered.
Causes of dissatisfaction.
Cease of Loyalty
Introversion.
Drawn to their inner world.
Learn best by reflection , mental practice .
Prefer communicate by writing
Depth of interest Not for circulation : for internal 226
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
Feeling
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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Type theory
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
Feeling
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
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.
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1. ISTJ : Serious , quiet, practical, orderly , logical , make up their mind , as
what they want to do , regardless of the external message .
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 .
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.