Module-1

Consumer Behaviour: Consumer Behavior is the Process Involved When

Individuals or Groups Select, Use, or Dispose of Products, Services, Ideas or Experiences (Exchan e! to Satisf" #eeds and Desires. Issues During Stages in the Consumption Process

Consumers Impact on Marketing Strategy Understandin consumer $ehavior is ood $usiness% &irms exist to satisf" consumers' needs, so &irms must understand consumers' needs to satisf" them% Identifies Groups of Consumers Who are Similar to ,ne -nother in ,ne or )ore Wa"s, and

(he Process of )ar*etin Se mentation+

Devises )ar*etin Strate ies that -ppeal to ,ne or )ore of (hese Groups%

Segmenting Consumers

y Demographic Dimensions:

Demo raphics are Statistics (hat )easure ,$serva$le -spects of a Population Such -s+

Consumers Impact on Marketing Strategy: Building Bonds with Consumers !elationship Marketing occurs .hen a compan" ma*es an effort to interact .ith customers on a re ular $asis, and ives them reasons to maintain a $ond .ith the compan" over time% Data ase Marketing involves trac*in consumers' $u"in ha$its ver" closel", and craftin products and messa es tailored precisel" to people's .ants and needs $ased on this information% Marketings Impact on Consumers: The Meaning of Consumption

Marketings Impact on Consumers: Consumption Typology Consumption ("polo " Explores the Different Wa"s (hat Product and Experiences Can Provide )eanin to People% (here -re / Distinct ("pes of Consumption -ctivities+

Marketings Impact on Consumers )ar*etin and Culture Popular Culture Intan i$le and (an i$le ,$0ects (he Glo$al Consumer Glo$al Consumer Culture Business to Consumer Sellin (B2C Commerce! 1irtual Consumption

Consumer to Consumer Sellin (B2B Commerce! 1irtual Brand Communities

Blurred Boundaries+ )ar*etin and 3ealit"

Concept and Need for studying CB Who $u"s products or services4 5o. do the" $u" products or services4 Where do the" $u" them4 5o. often do the" $u" them4 When do the" $u" them4 Wh" do the" $u" them4 5o. often do the" use them4

Consumer decision making Decision ma*in (information search, consider $rand alternatives! 5a$it ( little or no information search , considers onl" one $rand! Consumers $ehavior includes post purchase satisfaction or dissatisfaction $ehavior (.o t"pes of customers6 personal and or ani7ational consumer

Factors influencing purchase decision

ho is interested in the study of CB -ll firms (he ne. customer6Customer driven re.ards6Customer driven oals6Customer driven strate "6 Customer driven vision, mission and values

!e"elopment of CB as a field of study Ps"cholo "6stud" of individuals Sociolo " 8 stud" of roups Socio6ps"cholo " 8stud" of hoe people are influenced $" roups Cultural anthropolo "6 the influence of culture and societ" on the individual Economics6stud" of demand and suppl"

The !ark Side of Consumer Beha"ior

Interdisciplinary Influences

Two #erspecti"e on Consumer $esearch

The

heel of Consumer Beha"ior

Marketing %thics Business Ethics are 3ules of Conduct (hat Guide -ctions in the )ar*etplace 6 the Standards - ainst Which )ost People in a Culture 9ud e What is 3i ht and What is Wron , Good or Bad% &ther Marketing %thics Issues Do )ar*eters Create -rtificial #eeds4 3esponse+ )ar*etin attempts to create a.areness that these needs do exist, rather than to create them% -re -dvertisin and )ar*etin #ecessar"4 3esponse+ :es, if approached from an information dissemination perspective% Do )ar*eters Promise )iracles4 #ot if the" are honest; the" do not have the a$ilit" to create miracles%

'istory of Consumer $esearch Extension of mar*etin research .ith more emphasis on consumer $ehavior aspects

(.o reasons for stud"in CB6.h" consumers made the purchase decisions and ho. consumers .ould react to promotional messa es )odernist era 8positivists researchers conducted research studies adoptin methods of experimentin , o$servation and surve" techni<ues6<uantitative data so statistical anal"sis carried out

3esearch techni<ue6 )otivational research ( use of pro0ective techni<ues and in6depth intervie.s!came to $e used .idel" mar*eters and advertisin a encies

(he effectiveness of )otivational research method depends on hi hl" trained personnel Use of a com$ination of =ualitative and =uantitative research techni<ues -nother roup of researchers 8 academicians interested in the consumer experiences Ethno raph" 8related to cultural anthropolo ", .here in the researchers put themselves in the societ" under stud" so as to a$sor$ all the implications of the cultural practices

Semiotics 8 the stud" of s"m$ols and their interpretations In6 depth Intervie.s6 method .here the <uestions are as*ed to o$tain a ainful insi ht into the understandin of CB

#ositi"ism "s( Intrepreti"ism Positivism 5elps predict CB Uses =uantitative research methods 6experiments, surve" techni<ues and o$servations -ssumptions made6Consumers are rational decision ma*ers, pro$lem solvers, en a ed in information processin 6 can extend research findin to lar e population Intrepretivism Understandin consumption practices of consumers Use of <ualitative methods of research 8 ethno raph", Semiotics, in6depth intervie.s (he cause and effect $ehavior, cannot $e extended to lar er population

)alue of Consumer $esearch Provides information on ho. the consumers are $ehavin at the mar*et place Identif" future consumer needs or mar*etin opportunities Gives ans.ers to .hat is the current consumer trend in the mar*et, the potential customers and .hat is consumer satisfaction level in products and services C"#S$M%! B%&'("$! P!"C%SS)Consumer !esearch Process*

Secondary data Internal source External source Boo*s > Periodicals

Primary data

Depth intervie.s &ocus roups Pro0ective techni<ues6 to understand a persons hidden attitudes, motivation and feelin s

#ro*ect Techni+ues +ord 'ssociation 8respondents are presented .ith a series of .ords or phrases as* .hat comes first to their mind6(oothpaste666Coffee6666,Soft drin*6666, Ice cream6666, Watch66666 .hether desira$le or undesira$le .ord Sentence completion6(he $e innin are666666! ,hird person techni-ue6 3espondents are as*ed to descri$e a third person a$out .hom the" have little information6 to chec* attitudes a$out the respondent !ole Playing ,hematic 'pperception ,est ),',*6Under this techni<ue the respondents are sho.n an am$i uous picture or dra.in to interpret it !epertory .rid ) !ep .rid*/3espondents are presented .ith a rid and as*ed to title the columns .ith $rand names t"pes of a particular product( tastes of soft drin*,t"pes of t.o .heeler! select an" of three thin* of a phrase in .hich t.o are different from the third! Consumer Beha"ior Models %conomic Model 0earning Model Psychoanalytic Model Sociological Model &o1ard Sheth Model or fill in a $lan* ?speech $u$le' associated .ith a particular character or a am$i uous situation and then as* of the sentence is read out to the respondent and as*ed to complete it (People .ho don't drin* arieted drin*s

#sychoanalytic Model

Personalit" is an outcome of Id6 the source of all ps"chic ener " .hich drives us as action Super e o6the internal representation of .hat is approved $" the societ" E o6 the conscious directin sociall" accepted manner Sociological Model Individual $u"er is part of the institution called societ" &ormal @ Informal associations6 famil" mem$ers, emplo"ee, mem$er of a informal cultural or anisation 'oward Sheth model " 2ective It reflects ho. complex the .hole <uestion of CB is (o provide the frame.or* for includin various concepts li*e learnin , perception, attitudes .hich pla" a role in influencin CB Input 8Stimulus displa" 8Si nificant and S"m$olic( =ualit", Price, Distinctiveness in service, -vaila$ilit"! , Social( &amil", 3eference, Social class! Perceptual constructs6 ,vert search, Stimulus -m$i uit", -ttention ,Perceptual Bias! Aearnin constructs6Confidence, -ttitude, )otives, Intention, Choice criteria, Brand comprehension, Satisfaction ,utput6Social@ ,r ani7ational settin , Social class, Culture, Purchasin po.er@ financial status id directin id impulses to find ratification in a

),DUAE62 Se mentation

 It is the Process of dividin a hetero eneous mar*et into homo eneous su$ units% (he compan" can either launch a products , appreciatin the fact that the mar*et is a hetero eneous one% #eed 3or Segmentation )ichael Porter B (he competitive advanta e of a firm lies in $ein ever"thin to a select fe.C (o $e ever"thin to ever"one is a sure recipe for a strate ic failure 5elps the firm compete in a hi hl" competitive mar*et Segmenting Consumers y Demographic Dimensions

Demo raphics are Statistics (hat )easure ,$serva$le -spects of a Population Such -s+

M'!4%, S%.M%#,',I"# Individual Preference ( )otivation, Dno.led e, -ttitude, Beliefs, 1alues! &amil" >Peer pressure Social acceptance

 Education Earl" experiences ,ther environmental influences 'dvantages o3 Market Segmentation (ap the mar*et effectivel" Preference of place of purchase for customers Identif" and find out additional $enefit desired $" the people (he Willin ness to pa" for the additional $enefit desired $" the people Source or place from .here consumers .ould li*e to $u" Give consumer value Develop a distri$ution strate " Develop a suita$le pricin strate " Usa e of data$ase mar*etin Plannin mar*etin activities around the customer )ar*etin efforts are more efficient and economical Increases productivit" Criticisms o3 segmentation )ar*ets are not made up of se ments .ith different .ants $ecause $u"ers of one $rand $u" other $rands as .ell Bu"ers often choose from a list of accepta$le $rands Brands ma" differ in product form "et differ .idel" in mar*et share Criteria 3or selecting a market segment Identification )easura$ilit" -ccessi$ilit" Su$stantialit" Sta$ilit"

Bases 3or segmenting consumer markets .eographic Segmentation63e ion, Densit"( Ur$an, 3ural! and climate Demographic Segmentation6 - e, Gender, 3eli ion, Income level, Education, ,ccupation Psychographic Segmentation6 Social class, Aife st"le, Personalit" $se-related Segmentation6 Usa e rate, user status, Brand lo"alt", ,ccasion or usa e situation Bene3it Segmentation 8 Benefit Sou ht6 =ualit", Price, Econom", service Behaviouristic Segmentation 8 Bu"er readiness sta e6 una.are, a.are, informed, interested, desirous, positive intention to $u" Geo raphic Aocation of Customers Demographic Characteristics - e 8Infant, child mar*et E6E2"rs, teens mar*et, adolescent mar*et, "outh mar*et , middlea ed ,seniormar*et Income 8Ao. income , lo. middle income, middle income, upper middle income, hi her income Gender 8&emale @)ale ,ccupation 8 Professional, Business, self emplo"ed ,student , 5ouse.ives Education )arital Status &amil" si7e and structure

Psychographic (aria les Personalit" > Aife st"les Brand personalit" is a direct outcome of the usa e of ps"cho raphic varia$les in formulatin mar*etin strate ies &o1 to segment F sta es

 Surve" sta e6 2 parts 6E! &ocus roup discussions > in6depth intervie.s to et consumer motivation, attitudes, > $ehavior 2! Based on the focus roup a <uestionnaire is administered to the sample roup " 2ective o3 5uestionnaire -ttri$utes sou ht in a product > their priorit" ratin s Brand a.areness > ratin of different of different $rands Product usa e patterns Customer attitudes to.ards the eneric product or product cate or" itself Demo raphics, ps"cho raphics > media ha$its of sample respondents -nal"sis Sta e6 factor anal"sis is used to identif" factors that differentiate customer roups, Cluster anal"sis is no. used to cluster customer into different roups Profilin Sta e6 Each cluster is profiled in terms of demo raphics , ps"cho raphics, media ha$its, attitudes, $ehavior and consumption ha$its % (he mar*eter can ive each se ment a name $ased on a dominant distin uishin characteristic !e-uirements 3or %33ective Segmentation: -ccessi$ilit" )easura$ilit" 1ia$le Intensit" in Competition Motivation #eeds, Drives, Goals Emotional 1ersus 3ational )otives Positive )otivation6If an individual experiences a drivin force to.ards an o$0ect @person or situation

 #e ative )otivation6 Drivin force compellin the person to move a.a" from someone or somethin 5ull's drive reduction theor" attempts to explain $oth motivation and learnin is a popular theor" .hich lin*s needs, drives and oals #eeds > Goals+ Ph"siolo ical needs(primar" needs! Aearned (Secondar" or Cultural !#eeds #eeds -rousal 8("pes of Stimulus (Ph"siolo ical , Co nitive, Emotional, Exterior or Environmental! Goals and selection of Goals 8Selection $" an individual .ill depend on a num$er of factors such as personal experience, social and cultural norms and values , personal norms and values, ph"sical and intellectual capacit", accessi$ilit" of oal and self ima e -n individual's $ehavior to.ards reachin experience &rustration is the feelin experienced $" an individual .hen he@she fails to achieve a oal &rustration mechanism6ression, 3ationali7ation or compromise, 3e ression, Withdra.al, Pro0ection $lame( puttin $lame ! ,heories o3 #eeds: )aslo.'s 5ierarch" of #eeds 5enr" )urra"'s Aist of Ps"cho enic #eeds )c ClellandGs (heor" of #eed -chievement6 #eeds for Po.er, #eeds for -ffiliation, #eeds for -chievement )aslo.'s 5ierarch" of #eeds+ out to oals is ver" often influenced $" his expectation of success and failure as .ell as his past

&enry Murray Pshycogenic #eeds -merican ps"cholo ist 5enr" )urra" (EHIF6EIHH! developed a theor" of personalit" that .as or ani7ed in terms of motives, presses, and needs% )urra" descri$ed a needs as a, Jpotentialit" or readiness to respond in a certain .a" under certain iven circumstancesJ (EIFH!% (heories of personalit" $ased upon needs and motives su est that our personalities are a reflection of $ehaviors controlled $" needs% While some needs are temporar" and chan in , other needs are more deepl" seated in our nature% -ccordin to )urra", these ps"cho enic needs function mostl" on the unconscious level, $ut pla" a ma0or role in our personalit"% Murray6s ,ypes o3 #eeds )urra" identified needs as one of t.o t"pes+ E% Primary #eeds Primar" needs are $ased upon $iolo ical demands, such as the need for ox" en, food, and .ater% 2% Secondary #eeds Secondar" needs are enerall" ps"cholo ical, such as the need for nurturin , independence, and achievement% 0ist o3 Psychogenic #eeds (he follo.in is a partial list of 2/ needs identified $" )urra" and his collea ues% -ccordin to )urra", all people have these needs, $ut each individual tends to have a certain level of each need% 17 'm ition #eeds

'chievement: Success, accomplishment, and overcomin o$stacles%

%8hi ition: Shoc*in or thrillin other people% !ecognition: Displa"in achievements and ainin social status%

97 Materialistic #eeds

'c-uisition: ,$tainin thin s% Construction: Creatin thin s% "rder: )a*in thin s neat and or ani7ed% !etention: Deepin thin s%

:7 Po1er #eeds

' asement: Confessin and apolo i7in % 'utonomy: Independence and resistance% 'ggression: -ttac*in or ridiculin others% Blame 'voidance: &ollo.in the rules and avoidin $lame% De3erence: ,$e"in and cooperatin .ith others% Dominance: Controllin others%

;7 '33ection #eeds

'33iliation: Spendin time .ith other people% #urturance: (a*in care of another person% Play: 5avin fun .ith others% !e2ection: 3e0ectin other people% Succorance: Bein helped or protected $" others%

<7 In3ormation #eeds

Cogni=ance: See*in *no.led e and as*in <uestions% %8position: Education others%

In3luences on Psychogenic #eeds Each need is important in and of itself, $ut )urra" also $elieved that needs can $e interrelated, can support other needs, and can conflict .ith other needs% &or example, the need for dominance ma" conflict .ith the need for affiliation .hen overl" controllin $ehavior drives a.a" friends, famil", and romantic partners% )urra" also $elieved that environmental factors pla" a role in ho. these ps"cho enic needs are displa"ed in $ehavior% )urra" called these environmental forces Jpresses%J !esearch on Psychogenic #eeds ,ther ps"cholo ists have su$0ected )urra"Gs ps"cho enic needs to considera$le research% &or example, research on the need for achievement has revealed that people .ith a hi h need for achievement tend to select more challen in tas*s% Studies on the need for affiliation have found that people .ho rate hi h on

affiliation needs tend to have lar er social roups, spend more time in social interaction, and more li*el" to suffer loneliness .hen faced .ith little social contact% David C Mcclelland6s Motivational #eeds ,heory -merican David Clarence )cClelland (EIEK6IH! achieved his doctorate in ps"cholo " at :ale in EI/E and $ecame professor at Wesle"an Universit"% 5e then tau ht and lectured, includin a spell at 5arvard from EILM, .here .ith collea ues for t.ent" "ears he studied particularl" motivation and the achievement need% 5e $e an his )cBer consultanc" in EIMF, helpin industr" assess and train staff, and later tau ht at Boston Universit", from EIHK until his death% )cClelland is chiefl" *no.n for his .or* on achievement motivation, $ut his research interests extended to personalit" and consciousness% David )cClelland pioneered .or*place motivational thin*in , developin achievement6$ased motivational theor" and models, and promoted improvements in emplo"ee assessment methods, advocatin competenc"6$ased assessments and tests, ar uin them to $e $etter than traditional I= and personalit"6$ased tests% 5is ideas have since $een .idel" adopted in man" or anisations, and relate closel" to the theor" of&rederic* 5er7$er % David )cClelland is most noted for descri$in three t"pes of motivational need, .hich he identified in his EIME $oo*, (he -chievin Societ"+

achievement motivation )n-ach* authority>po1er motivation )n-po1* a33iliation motivation )n-a33il*

da"id mcclelland,s needs-.ased moti"ational model (hese needs are found to var"in de rees in all .or*ers and mana ers, and this mix of motivational needs characterises a personGs or mana erGs st"le and $ehaviour, $oth in terms of $ein motivated, and in the mana ement and motivation others% the need for achie"ement /n-ach0 (he n6ach person is Gachievement motivatedG and therefore see*s achievement, attainment of realistic $ut challen in oals, and advancement in the 0o$% (here is a stron need for feed$ac* as to achievement and pro ress, and a need for a sense of accomplishment% the need for authority and power /n-pow0 (he n6po. person is Gauthorit" motivatedG% (his driver produces a need to $e influential, effective and to ma*e an impact% (here is a stron need to lead and for their ideas to prevail% (here is also motivation and need to.ards increasin personal status and presti e%

the need for affiliation /n-affil0 (he n6affil person is Gaffiliation motivatedG, and has a need for friendl" relationships and is motivated to.ards interaction .ith other people% (he affiliation driver produces motivation and need to $e li*ed and held in popular re ard% (hese people are team pla"ers%

Motivational !esearch
E!Depth Intervie.s 2!Pro0ect (echni<ues Word -ssociation 8respondents are presented .ith a series of .ords or phrases as* .hat comes first to their mind6(oothpaste666Coffee6666,Soft drin*6666, Ice cream6666, Watch66666 .hether desira$le or undesira$le .ord Sentence completion6(he $e innin of the sentence is read out to the respondent and as*ed to complete it (People .ho don't drin* arieted drin*s are666666! (hird person techni<ue6 3espondents are as*ed to descri$e a third person a$out .hom the" have little information6 to chec* attitudes a$out the respondent 3ole Pla"in Positive and #egative Motivation )otivation is concerned .ith inspirin )otivation ma" $e of t.o t"pes+ N N Positive #egative the man to .or* to et the $est result%

Positive motivation In real sense, motivation means positive motivation% Positive motivation induces people to do .or* in the $est possi$le manner and to improve their performance% Under this $etter facilities and re.ards are provided for their $etter performance% Such re.ards and facilities ma" $e financial and non6financial% #egative motivation

#e ative motivation aims at controllin the ne ative efforts of the .or* and see*s to create a sense of fear for the .or*er, .hich he has to suffer for lac* of ood performance% It is $ased on the concept that if a .or*er fails in achievin the desired results, he should $e punished% Both positive and ne ative motivation aim at inspirin the .ill of the people to .or* $ut the" differ in their approaches% Whereas one approaches the people to .or* in the $est possi$le manner providin $etter monetar" and non6monetar" incentives, the other tries to induce the man $" cuttin their .a es and other facilities and amenities on the $elief that man .or*s out of fear%

"nce a person

egins to 3ul3ill psychological needs? you can in3luence y targeting your pitch to1ard particular uying motives7

uying decisions

!ational 'nd %motional Buying Motives Bu"in motives can $e loo*ed at as the .a" to approach prospects or a .a" to present the product to the prospect% (here are t.o approaches that $u"in motives can ma*e to.ard the customer% (hese are emotional and rational motives% Emotional motives prompt a prospect to act $ecause of an appeal to some sentiment or passion% Emotional reasons for $u"in products often involve little lo ic and usuall" stem more from the heart than the head% 3ational $u"in motives usuall" appeal to the consumerGs reason or $etter 0ud ment% Some emotional motives include+ O - romantic desire to attract the opposite sex
!ational uying motives Econom" of purchase Econom" of use Efficient profits Increased profits Dura$ilit" -ccurate performance Aa$our6savin (ime6savin Simple construction Simple operation Ease of repair Ease of installation Space6savin Increased production -vaila$ilit"

Complete servicin Good .or*manship Ao. maintenance (horou h research Desire to $e uni<ue Curiosit" %motional uying motives Pride of appearance Pride of o.nership Desire for presti e Desire for reco nition Desire to imitate Desire for variet" Safet" &ear Desire to create Desire for securit" Convenience Desire to $e uni<ue Curiosit"

Dynamic #ature o3 Motivation: #eeds > their fulfillment are the $asis of motivation needs chan e, so also motivation% Both internal > external factors are responsi$le for chan e% (he fact is that not all needs are satisfied full"% When some are satisfied, some others arise% Sometimes $ecause of personal, financial, social > cultural limitations, people can't fulfill some of their needs, .ants > oals% &ailure of need fulfillment ma" ive rise to the follo.in states+ E%3ationalisation 8 tr"in to 0ustif" the situation > excusin oneself, 2%ression 8 ettin an r" > frustrated, and resortin to unsocial actions,

F%3e ression 8 tr"in to settle .ithout that particular need > tr" somethin else, /%Withdra.al 8 tr"in to disassociate oneself from the ver" thou ht of it% ,he Measurement o3 motives ,he measurement o3 the motives is done on : 1ays

Self-Enhancement
The self-enhancement motive states that people engage in self-evaluation in view of, not only improving the positivity of their self-conceptions, but also protecting the self from negative information (they search for positivity and avoid negativity) In order to do this, people process information important to the self in a selective manner (for instance, by focusing on information that has favourable implications to the self and discarding information with unfavourable implications to the self). People also choose to compare themselves socially to others so as to be placed in a favourable position. By doing this, people see to boost the positivityof the self or decrease its negativity, aiming to ma e others see them as socially desirable, hence increasing their levels of self-esteem.

Self-Assessment
The self-assessment motive is based on the assumption that people want to have an accurate and ob!ective evaluation of the self. To achieve this goal, they wor so as to reduce any uncertainty about their abilities or personality traits. "eedbac is sought to increase the accuracy and ob!ectivity of previously formed self-conceptions. This is regardless of whether the new information confirms or challenges the previously e#isting self-conceptions

Self-Verification
The self-verification motive asserts that what motivates people to engage in the self-evaluation process is the desire to verify their pre-e#isting self-conceptions, maintaining consistency between their previously formed self-conceptions and any new information that could be important to the self (feedbac ).By doing this, people get the sense of control and predictability in the social world.

Elements of Consumer Behavior

Variables & Processes Inside Black Box

Consumer Buying Process

The Buyer !ecision #rocess

Module-: Personality

Patterns of Individual $ehavior .hich are consistent and endurin -n Individual's personalit" represents a set of characteristics to understand CB 8Boost,5orlic*s( Sport" Personalit"!

Properties of Personalit" Personalit" reflects individual differences Personalit" is consistent and endurin 6 does not chan e Personalit" can chan e6 specific events can $rin chan e in individual personalit"6marria e, career, stud", promotion (heories of Personalit" (rait (heor" Ps"choanal"tical (heor" (&reudian theor"! #eo6 &reudian (heor"

(rait (heor" =uantitative in nature > focuses on the measurement of certain specific characteristics or traits )ar*eters use personalit" traits to se ment different mar*ets Personalit" tests to measure consumer traits are

Consumer (raits Consumer innovativeness+ (o .hat extent a person is receptive to a ne. $u"in experience Consumer suscepti$ilit" to interpersonal influence (SUSCEP!+ (o understand ho. consumers .ill respond to social influences Consumer materialism + (o ascertain the extent to .hich consumer's are attached to .orldl" material possessions Consumer ethnocentrism+ CE(SC-AE the li*elihood of consumer acceptin re0ectin forei n6 made products Personalit" traits+ -ttitudes, Interests, #eeds, Ph"siolo ", -ptitude , )orpholo ", (emperament,

Ps"choanal"tical (heor" (&reudian theor"! In6depth stud" of individual of personalit" Personalit" is an outcome of Id6 the source of all ps"chic ener " .hich drives us as action, $asic, instinctive, needs, desires, impulses that demand immediate ratification Super e o6the internal representation of .hat is approved $" the societ"6 Internal expression of societal values and ideals, moral conscience E o6 the conscious directin id directin id impulses to find ratification in a sociall"6Individual conscious control, internal monitor to $alance the impulsive demands of the id and restraints put $" the super e o% 6Brand Positionin and Brand Personalit" Brand Positionin and Brand Personalit" Depth and &ocus Group Intervie.s Pro0ective (echni<ues6 motivational research techni<ues 8as*in consumers to complete sentences,pictures, personif" $rands #eo6 &reudian (heor" Social relationship pla"ed a vital role in the formation and development of personalit" &reud's collea ues .ho disa reed .ith &reud's ri id adherence to consider onl" the $asic $iolo ical or instinctive traits as determinants of personalit" -uthors felt other reasons Strive for Superiorit" Inter6 relationship .ith other men Parent 8child relationship Daren 5orne"6 classified three personalit" roups6 Complaint t"pe, ressive t"pe, Detached t"pe ressive6 excel, see others as competitors Complaint t"pe6 desire to $e included in activities of roup, .ant appreciation Detached6 emotional distance $et.een themselves and others prefer independence, self reliance, self sufficienc" 9un 's Personalit" ("pes

Grouped into 2 fundamental t"pes6Extrovert > Introvert )ental operations into / fundamental activities6sensin , feelin , thin*in , Intuitin

&e. characteristics of Selected 9un ian Personalit" t"pes Sensin 6 (hin*in (S(!

Ao ical, empirical and rational 3is* avoider, .ill search in depth for decision ma*in information Price sensitive and materialistic in considerin motives

Short term consideration in decision ma*in Intuitive 6 (hin*in (I(!

(a*es a $roader perspective of the situation and .orld (hin*s , uses lo ic and ima ination in ta*in decisions Considers man" options .hile ta*in decisions6 speculative

(a*es lon term vie. .hile ta*in decisions Sensin 6 &eelin (S&!

Considers personal values rather than lo ic6 empirical vie.point )a*es decision after considerin others 8 su$0ective orientation Status conscious and materialism reflects the impact on other persons

Short term consideration in decision ma*in Intuitive6 &eelin (I&!

(a*es a $roader perspective of the situation or .orld Considers various options for decision ma*in People oriented and su$0ective oriented in decision ma*in

Aeast price conscious, are venturesome and novelt" see*in (he time period is indefinite .hile ta*in decisions

B( stud" (.een ("pe E6EL%2P $rash, spoilt, not academicall" oriented and prone to tantrums, receive poc*et mone", freedom of space, $i priced purchases (.een ("pe 26 EE%HP<uite, traditionalist at heart, do not care a$out most thin s nor do their parents have hi h expectations of them (.een ("pe F 62L%FHP hi hl" involved in purchase of hi h priced products for home , expresses vie.s of their parents,receive least poc*et mone" parents $u" them ever"thin (.een ("pe / 6/K%LEP home $irds .ith an active outside life, ood at school and .ith a stron value s"stem in rained in them Personalit" Influences and Consumer Behavior Consumer Innovativeness Do matism Social character #eed for uni<ueness ,ptimum stimulation level 1ariet"6 novelt" see*in

Consumer Innovativeness Element of ris*, eas" accepters of ne. products and services Gar" and Star*e have identified sixteen source personalit" traits

Do matism Is a personalit" trait .hich indicates de ree of ri idit" individuals displa" .hen confronted .ith somethin .hich is unfamiliar to them or to.ards information .hich is contrar" to their o.n esta$lished $eliefs, (hose hi h in Do matism .ill decide on the .orthiness of the products @ services and those lo. on Do matism consider unfamiliar or opposin $eliefs ,ptimum Stimulation level (,SA!

Displa" more .illin ness to ta*e ris*s , tr" ne. products , $e innovative ,SA reflects a persons desire for the level of lifest"le stimulation

1ariet" or #ovelt" See*in Explorator" purchase $ehavior6 explorin ne.er $rands 1icarious exploration6 consumer o$tains information a$out ne. alternatives and contemplates a$out the ne. option .ith caution and reservation Use innovativeness6 alread" usin a product in a ne. or novel .a"

Social Character Personalit" trait depicts character closel" related to socio6 cultural environment Consumers rel" on their o.n intuition, standards and values Consumers .ho loo* for uidance 8ne. products

#eed for Uni<ueness Uni<ue people Do not .ant to conform to other's expectations or standards

Cognitive Personality ,raits

Stress on visual information and visual products CD@D1D .hile 1er$ali7ers prefer ver$al information on products 8mem$ership in $oo*s or ma a7ine shops #eed for co nition 8related to the individuals thin*in process and measures a persons cravin s for somethin , the need for co nition helps on the creation of advertisin messa es .ith the ri ht com$ination of colour mix,interested in model edorsin product Inter related consumption and possession personalit" traits

Consumer )aterialism6 People attached to material possessions , characteristic o$servation

Undue importance to ac<uirin and displa"in their .orldl" possessions Crave for possessin lots of thin s Self centered and selfish Ai*e to possess thin s irrespective of .hether the" derive reater happiness or satisfaction from possessin the same &ixated Consumption Behaviour6 $et.een materialistic and addictive $u"in is fixated consumption, interested in $u"in $ut en0o" displa"in them and *no.n for their involvement .ith others of same interest 1er" deep interest displa"ed for a particular o$0ect or product Dedicated search Willin ness to spend a considera$le amount Compulsive Consumption Behaviour6 a$normal $ehaviour,addiction, actions out of control causin harm to them and people around them6li<our, dru addiction Consumer Ethnocentrism Consumer's response to forei n products 5i hl" ethnocentric6*hadi products Ao. ethnocentric6 affinit" for US- made products

Self Ima e Personalit" traits, ha$its, Possessions, $ehavior Uni<ue6Bac* round, experience, *no.led e

-ctual self ima e65o. the" actuall" see themselves Ideal self ima e6 5o. the" .ould li*e to see themselves Social self ima e6ho. the" feel the societ" sees them Ideal social self ima e6ho. the" .ould li*e the societ" to see them Expected self ima e6(heir expectation of ho. the" see themselves at some specified future time

Ideal self ima e and expected self ima e is of more importance to the mar*eter6 consumer ma" $e induced to $u" products Extension of self ima e )otivate the individual to do thin s other.ise difficult for him6 house.ife operate a PC (hrou h s"m$olic representation6$at .ith sachin si nature B" conferrin status or ran* B" $esto.in upon someone close and handin over a priced possession &irms mar*etin products @services related to cosmetics, 0e.eller", hair st"les, mem$ership to certain clu$s,other personal care products , $eaut" salons are .or*in out mar*etin plans to help consumer ain inflated self ima e Consumer Perception Perception is the process $" .hich individual selects , or ani7es and and interprets stimuli into a meanin ful and coherent picture of the .orld #o t.o individuals are ali*e Perception is $ased on each one's needs , values and expectations

Sensation@ -$solute (hreshold Sensation is the immediate direct response of a ph"sical sensor" or an Ph"sical senses are vision, hearin , touch, smell and taste

External factors Intensit" and si7e Position Contrast #ovelt" 3epetition )ovement

Internal &actors influencin -ttention )ar*etin )ix Brand Personalit"

Perceptual Process Perceptual Selection

Selective attention Selective exposure Selective perception Perceptual vi ilance and perceptual defense Perceptual e<uili$rium and dise<uili$rium Perceptual ,r ani7ation

Groupin Context Perceptual Interpretation

Cate ori7ation Inference Perceptual Distortion Personalit"@ph"sical appearance Stereot"pes 5alo Effect Irrelevant Cues &irst Impression 5ast" Conclusions

Perceptual Inference

Brands ,utlets -ssociation

Consumer Ima er" Consumers have a num$er of endurin perceptions and ima es .hich are <uite relevant to the stud" of consumer $ehavior au in consumer mind is difficult Aearnin )a*e a list of an" L $rands of product or services to .hich "ou feel "ou are lo"al% -s* five other classmates to prepare a similar list% Compare all the lists .hich are the common $rands identified4 &ind out the reasons for the $rand choice, does it match "our ans.er Cognitive Personality @actors #eed for co nition (#C! - person's cravin for en0o"ment of thin*in Individual .ith hi h #C more li*el" to respond to ads rich in product information 1isuali7ers versus ver$ali7ers - person's preference for information presented visuall" or ver$all" 1er$ali7ers prefer .ritten information over raphics and ima es%

@rom Consumer Materialism to Compulsive Consumption Consumer materialism (he extent to .hich a person is considered BmaterialisticC Consumers fixated on certain products or cate ories of products B-ddictedC or Bout6of6controlC consumers &ixated consumption $ehavior Compulsive consumption $ehavior

Sample Items to Measure Compulsive Buying E% When I have mone", I cannot help $ut spend part or the .hole of it% 2% I am often impulsive in m" $u"in $ehavior% F% -s soon as I enter a shoppin center, I have an irresisti$le ur e to o into a shop to $u" somethin % /% I am one of those people .ho often responds to direct mail offers% L% I have often $ou ht a product that I did not need, .hile *no.in I had ver" little mone" left% Consumer %thnocentrism Ethnocentric consumers feel it is .ron to purchase forei n6made products (he" can $e tar eted $" stressin nationalistic themes

Items 3rom the C%,SC'0% E% Indians should al.a"s $u" Indian made products instead of imports% 2% ,nl" those products that are unavaila$le in the India should $e imported% F% Bu" Indian made products% Deep Indian .or*in % /% Purchasin forei n6made products is un6Indian% L% It is not ri ht to purchase forei n products, $ecause it puts Indians out of 0o$s% M% - real Indian should al.a"s $u" Indian6made products% K% We should purchase products manufactured in India instead of lettin other countries et rich off us% H% It is al.a"s $est to purchase Indian products% Brand Personality Personalit"6li*e traits associated .ith $rands Examples Purdue and freshness #i*e and athlete B)W is performance driven

Aevi's LQE 0eans are dependa$le and ru

ed

Brand personalit" .hich is stron and favora$le .ill stren then a $rand $ut not necessaril" demand a price premium

' Brand Personality @rame1ork

Product Personality Issues Gender ,ften used for $rand personalities Some product perceived as masculine (coffee and toothpaste! .hile others as feminine ($ath soap and shampoo! Geo raph" Color Color com$inations in pac*a in and products denotes personalit" -ctual locations li*e Philadelphia cream cheese and -ri7ona iced tea &ictitious names also used such as 5idden 1alle" and Bear Cree*

Marketers o3ten use a 3ictitious location to help 1ith personality7

Sel3 and Sel3-Image Consumers have a variet" of endurin ima es of themselves

(hese ima es are associated .ith personalit" in that individuals consumption relates to self6ima e

,he Marketing Concept Issues $elated to Self and Self-Image "ne or multiple selves : - sin le consumer .ill act differentl" in different situations or .ith different people We have a variet" of social roles: Contains traits, s*ills, ha$its, possessions, relationships and .a" of $ehavior Developed throu h $ac* round, experience,and interaction .ith others Consumers select products con ruent .ith this ima e )ar*eters can tar et products to a particular BselfC

Makeup o3 the sel3-image: Contains traits, s*ills, ha$its, possessions, relationships and .a" of $ehavior Developed throu h $ac* round, experience,and interaction .ith others Consumers select products con ruent .ith this ima e

%8tended sel3 : Possessions can extend self in a num$er of .a"s+

-ctuall" S"m$olicall" Conferrin status or ran* Besto.in feelin s of immortalit" Endo.in .ith ma ical po.ers

'ltering the sel3- image : Consumers use self6alterin products to express individualism $" Creatin ne. self )aintainin the existin self Extendin the self

Conformin

%0%M%#,S "@ 0%'!#I#. P!"C%SS Drive )otivation Cues 3esponse 3e6inforcement 3etention

0%'!#I#. ,&%"!I%S 17 Classical Conditioning ) ehaviours as a result o3 close association stimulus* et1een a primary stimulus and a secondary

97 "perant or Instrumental Conditioning )conse-uences o3 ehaviours can result in changes in the pro a ility o3 it occurrence*

:7 Cognitive ,heory )emphasis is on the thought process involved in learning*

;7 " servational 0earning )leaving ehaviour*

ased on imitating others

L% 0o1 involvement theory )also kno1n as the ',! A'1areness? ,rial? !e-in3orcement > !epeatB &ierarchyB

C"#S$M%! M%M"!C Short term memor"

 Aon term memor" 0earning process:

&'BI, De3ine &a it ' model o3 ha itual purchasing ehaviour

Perception (o understand ho. consumer decision ma*in process can $e influenced $" his or her perception of the product or $rand %

@actors in3luencing perception

,&% P%!C%P,$'0 P!"C%SS (he perceptual process involves three components+ Perceptual Selection ((he three processes .hich define selection Perceptual or ani7ation ((he three $asic principles used are Perceptual interpretation ((.o principles are used

are+ exposure, attention and selective perception! roupin , closure and context! Cate ori7ation and Inference!

Consumer Imagery and marketing implications Consumer have a num$er of endurin perception or ima es .hich are <uite relevant to the consumer $ehaviour stud"% Brand ima e Consumer over all perception of the $rand, .hich to a certain extent could $e influenced $" product positionin ! and self ima e of the consumer (.hich could include+ actual self ima e, Social self ima e, Ideal self ima e and expected self ima e! 3is*+ C"#C%P, "@ P%!C%I(%D-!IS4 3is* reduction strate ies -dopted $" consumer See* information Continuin the same $rand Brand ima e Store ima e Bu" the most expensive $rand See* reassurance )emor" (.o sources of product information+ External environment+ pac*a in , la$els, P,S displa"s, prices, other mar*etin information )emor"+ past experiences, .ord6of6mouth, famil" preferences -ssociative net.or* of nodes (concepts! and lin*s (connections! ConsumerGs perception of <ualit" ConsumerGs price perceptions -dvertisin and perceived $enefit Sales promotion and perceived value Pu$lic relation and perceived value Personal sellin and perceived value

 Scripts+ information or ani7ed in memor" around different t"pes of events or episodes (e% %, a restaurant script! 5o. Information is Captured and Stored in )emor" )emor" processin areas+ #e. information is initiall" captured in sensor" memor"% processin is shallo.; capacit" is limited Information is transmitted from sensor" memor" to short6term (S(!memor"% -nal"7in and assi nin meanin ; limited capacit" to a finite num$er of chun*s (units of memor"!; information ma" $e rehearsed to retain its meanin Information rehearsed in S( memor" is transmitted to lon 6term (A(! memor" for stora e and retrieval as needed; A( memor" capacit" is unlimited Information 3etention It refers to the amount of material previousl" learned that is remem$ered &or ettin 8 the loss in retention of material previousl" learned 3etention affected $"+ Incomin information (he person receivin the information 3etention+ Characteristics of Incomin Information and Processin 3epetition or rehearsal 3elevance Competin information (ne. information competes .ith old; ad BclutterC issue! Completeness of information (Sei arni* Effect 8 if incomplete, info retained for later completion! (ime (lapsed time since exposure!

 )ood (positive mood impact! 5o. 3etention is Influenced $" the Information 3ecipient Consumer familiarit" or experience Bein more familiar .ith a product cate or" increases the chances of remem$erin information a$out ne. or existin $rands -ffects .a" information is or ani7ed in memor" Consumer motivation 5i her motivation to process info is positivel" related to doin so at deeper levels of memor" and to retain info lon er and more accuratel"% 5o. Information is 3etrieved from )emor" 3etrieval cues 8 Bself6C or Bexternall"6C shapes, colors, smells,etc%! Interference from competin cues (ma*e cue to stand out! Consumer's state of mind+ hi her retrieval levels occur .hen info processin and retrieval mood and@or interest levels match In3ormation Storage in Memory D Processing %33ects 3ecall of numericall"6coded information is $etter than ver$al information BSurface6level processin C (Bsensor"C! occurs .hen there is no anal"sis of meanin % Consumer 0ud ment error rate hi her% B)eanin 6level processin C (BsemanticC! implies anal"sis of meanin % Consumer 0ud ment error rate lo.er% Aearnin 8 Pro$a$ilit" (heor" Aearnin formation of ha$its formed and chan ed throu h experience .ith products or services enerated (sensor" ima es+ sounds,

 Stren th of ha$it depends upon the amount of reinforcement it receives Pro$a$ilit" models are used to predict the formation of ha$its+ Brand lo"alt" Brand acceptance Brand s.itchin #e. product forecastin Aearnin 8 Behavior -nal"sis (he relationship $et.een mar*eters and consumers often resem$les a ne otiation Several $ehavior modification principles (B)Ps! are used $" mar*eters to induce consumers to $u" their products and services% Classical conditionin 8learnin results from a relationship $et.een a stimulus and a response Pavlov and his salivatin do s+ a conditioned stimulus (the rin in $ell $efore each feedin ! results in a conditioned response (salivation! )ar*etin applications 5i her order conditionin and cele$rit" advertisin Stren th of the unconditioned stimulus #um$er of pairin s &or.ard versus $ac*.ard versus simultaneous conditionin #e. versus existin products ,perant conditionin 8 a process in .hich the fre<uenc" of occurrence of a $it of $ehavior is modified $" the conse<uences of the $ehavior E% Especiall" relevant in lo. involvement purchases 2% 3e.ards > punishments -#D consumer $ehavior F% Generali7ation 8 the tendenc" to respond in similar .a"s to similar stimuli% /% Discrimination 8 the process throu h .hich consumers restrict their ran e of responses and attach themselves to a particular $rand% L% )odelin 8 the process throu h .hich an individual learns a $ehavior $" o$servin the $ehavior of others and the conse<uences of this $ehavior%

Aearnin 8 Co nitive (heor" Emphasis is on thin*in rather than the doin aspects of learnin % &our sta es+ &ormulation of h"potheses (specific testa$le assumptions! a$out products or $rands Exposure to evidence (passive or active! Encodin of the evidence Inte ration of earlier h"potheses .ith ne. information into $eliefs &amiliarit", am$i uit", motivation Co nitive (heor" and )ar*etin Strate ies for mar*et leaders (topdo s! 3einforcement Bloc*in Explainin Strate ies for mar*et underdo s Disruption &acilitatin trial Perception Perception is the .a" in .hich an individual athers, processes, and interprets information from the environment% (.o vie.s of consumer perception Sensor" perception Gestalt theor" of perception Sensor" Perception It is overned $" the five senses+ si ht, smell, sound, touch, and taste It focuses on product specific sense attri$utes and ho. these are understood and evaluated $" consumers%

&actors -ffectin Sensor" Perception Stimulus factors (examples! 1isual cues+ color, shape, and si7e -ural cues+ tempo and pitch ,lfactor" cues (taste T smell!+ s.eet, $itter, salt", and floral (actile cues+ soft, coarse, and sil*" Individual 3esponse &actors Sensor" acuit"+ the capacit" to reco ni7e and differentiate amon certain sensor" cues; the BliminC Sensor" preferences+ sensor" product features are perceived and evaluated $ased on those li*ed or disli*ed Consumer expectation+ affects ho. product features are li*el" to $e perceived@evaluated% When features match expectations this "ields more positive preference outcomes Gestalt (heor" of Perception Gestalt principle+ the .hole adds up to more than the sum of its parts People perceive BformC a$ove all else (he form ma" remain constant even thou h some specific features of it ma" chan e (color, tempo, etc%! 8 Bvariations on the same themeC -pplications+ si7e, actual@illusion of motion, $orderin for ads or displa"s .hile reall" the same &actors Influencin Gestalt Perception Stimulus factors+ color and contrast, si7e, intensit", position, isolation, and unit" Individual response factors+ co nitive set interest, involvement, needs, values, and

5o. consumers Interpret Perceptions4 Cate ori7ation+ the ps"cholo ical process throu h .hich a consumer compares the perception of a product .ith a mental representation of that product in memor"% -nal"tic versus non6anal"tic (meetin or not meetin re<uired attri$utes to BfitC! )ar*etin implications for ne. products or innovations Consumer -ttri$utions It refers to the process throu h .hich people connect events and $ehavior .ith causes% &orms of attri$ution Product perception (a product pro$lem! Self6perception (<uestionin oneself! Person perception (<uestionin others motives! Perceptions of Product@Service =ualit" Perceived <ualit" 8 a perceptual outcome enerated from processin product or service features ($enefits delivered! that leads the consumer to ma*e inferences a$out the <ualit" of that product or service Dimensions of perceived <ualit" for dura$le oods+ ease of use, versatilit", dura$ilit", servicea$ilit", performance, and presti e Perceived hi h <ualit" product satisfaction 3is* Perception@3is* 3eduction It refers to a perceptual process and $ehavior outcomes enerated from the perception of ris* in the purchase or a product or service Components of ris*+ Severit" of conse<uences (ho. $ad .ill it $e!

 Uncertaint" related to those conse<uences (.hat are the chances the conse<uence .ill occur! 3is* reduction strate ies+ $ehaviors to reduce their perception of ris* in purchase situations Price Perception Consumers perceive a price as either hi h or lo. on the $asis of a comparison .ith an internal price (or referent price!% Price perceptions and the social 0ud ment theor" 8 Bre ionsC B-ssimilationC (accepta$le! and BcontrastC (too hi h or lo.! Perceived 1alue (he trade6off $et.een product $enefits and product costs% Perceived value U perceived $enefits @ perceived costs

),DUAE6L Basic Communication Model

%lements o3 the Communications Process (he )essa e Initiator (the Source! (he Sender (he 3eceiver

(he )edium (he )essa e (he (ar et -udience (the 3eceivers! &eed$ac* 6 the 3eceiver's 3esponse

Issues in Credi ility Credi$ilit" of Informal Sources Credi$ilit" of &ormal Sources Credi$ilit" of Spo*espersons and Endorsers )essa e Credi$ilit"

%ndorser Credi ility Endorser credi$ilit" is important .hen messa e comprehension is lo. )atch must exist $et.een product attri$utes and endorser attri$utes Credi$ilit" is hi her .hen endorser's demo raphic characteristics are similar to those of tar et audience Endorser credi$ilit" is not a su$stitute for corporate credi$ilit"

Barriers to Communication Selective Perception Wanderin , Sappin , Sippin , and Channel Surfin Com$at .ith 3oad$loc*in

Ps"cholo ical #oise

Com$at .ith repeated exposures, contrast in the cop", and teasers

Comprehensive Communication Model

Issues in Designing Persuasive Communications Communications strate " )edia strate " )essa e strate "

Communications Strategy

Perception> %8perience> Memory Model o3 'dvertising

Media Strategy Consumer profiles -udience profiles

A cost-effective media choice is one that closely matches the advertisers consumer profile with the mediums audience profile. Buyer Personalities and 'dvertising Strategies

Involvement ,heory and Persuasion (he Ela$oration Ai*elihood )odel (EA)! proposes that mar*eters use the Vcentral route to persuasion for hi h involvement products and the Vperipheral route to persuasion for lo. involvement products Issues in Message Presentation

3esonance6continuin to sound and rin ,causin reinforcement )essa e &ramin ,ne6sided 1ersus (.o6sided )essa es Comparative -dvertisin ,rder Effects 3epetition

,1o-Sided 'ppeal %motional 'dvertising 'ppeals: &ear, 5umor, -$rasive advertisin , -udience participation I)P-C( ,& 5U),3 ,# -D1E3(ISI#G &umor attracts attention7 &umor does not harm comprehension7 &umor is not more e33ective at increasing persuasion7 &umor does not enhance source credi ility7 &umor enhances liking7 &umor that is relevant to the product is superior to humor that is unrelated to the product7 'udience demographic 3actors a33ect the response to humorous advertising appeals7 ,he nature o3 the product a33ects the appropriateness o3 a humorous treatment7 &umor is more e33ective 1ith e8isting products than 1ith ne1 products7 &umor is more appropriate 3or lo1-involvement products and 3eeling-oriented products than 3or high-involvement products7