Chapter 4.

The Consumer as an Individual

4.1. Consumer Motivation: Motivation refers to `the processes that cause people to behave
as they do'. It occurs when a need is aroused that the consumer wishes to satisfy. Once a need has
been activated, a state of tension exists that drives the consumer to attempt to reduce or eliminate
the tension. Marketers try to create products and services that will provide the desired benefits
and permit the consumer to reduce this tension, by going in for consumption or acquisition of the
products/services. It is a psychological driving force within individuals them impels them to
action. This driving force is produced by a state of tension, which exists as the result of an
unfulfilled need. Individuals strive both consciously and unconsciously to reduce this tension
through behavior that they anticipate will fulfill their needs and thus relieve them of the stress
they feel. The specific goals they select and the pattern of action they undertake to achieve their
goals are the results of individual thinking and learning.

Factors Affecting Motivation

Factors Affecting Motivation

Because motivation can affect outcomes of interest to marketers (like goal-relevant behaviors
such as purchasing, effortful information processing, and felt involvement; it is important for
marketers to understand what affects motivation.Therefore, the following factors affects the
motivation of consumers:

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 A. Personal Relevance: A key factor affecting motivation is the extent to which something
is personally relevant—that is, the extent to which it has a direct bearing on and signify-
cant implications for your life. It is Something that has a direct bearing on the self and
has potentially significant consequences or implications for our lives.
B. Consistency with Self-Concept: Something may be personally relevant to the extent that
it bears on your self-concept, or your view of yourself and the way you think others view
you. Self-concept helps us define who we are, and it frequently guides our behavior.
Note that different parts of a self-concept can be salient at different times
C. Values: Consumers are more motivated to attend to and process information when they
find it relevant to their values—beliefs that guide what people regard as important or
good. Thus, if you see education as very important, you are likely to be motivated to
engage in behaviors that are consistent with this value, such as pursuing a degree.
D. Needs: Consumers also find things personally relevant when they have a bearing on
activated needs. A need is an internal state of tension caused by disequilibrium from an
ideal or desired state.
Goals: are the sought after results of motivated behavior. For any need there are different and
appropriate goals. The goals selected by the individuals depends on their personal experiences,
physical capacity, prevailing cultural norms, and values and the goal’s accessibility in the
physical and social environment.

Needs: Every individual has needs: some are innate and some others are acquired. Innate needs
are physiological (biogenic); they include the need for food water, air, clothing, shelter and sex.
Because they are needed to sustain biological life, the biogenic needs are considered to be
primary needs or motives. Acquired needs are needs that we learn in response to our culture or
environment. These may include needs for self-esteem, prestige, affection, power and learning.
Because acquired needs are generally psychological (psychogenic), they are considered
secondary needs or motives. Motive, inducement, incentive apply to something that prompts a
person to action. Motive is usually applied to an inner urge that moves a person; it may also
apply to a contemplated goal, the desire for which moves the person.

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Maslow’s Theory of Motivation

It is a macro theory designed to account for most human behavior in general. It is based on
Maslow’s hierarchy of needs, which states that a human being has a variety of needs and, these
can be classified as primary and secondary needs or, lower-order and higher-order needs. Once a
need is fulfilled, human beings, try to fulfill other needs. This is usually done in a hierarchy,
which can be classified as under:
Physiological
Food, water, sleep, clothing, shelter and sex. Products in this category include, foods, health
foods, medicines, drinks, house garments, etc.
Safety needs
Seeking physical safety and security. Safety of person, safety of belongings, security of job, etc.
Products are locks, guns, insurance policies, burglar alarms, retirement investments, etc.
Social needs
The need to be approved in a society—to love and be loved, friendship, love appreciation and
group acceptance.
Products are general grooming, entertainment, clothing, cosmetics, jewellery, and fashion.

Esteem needs
Desire for status, for superiority, self-respect and prestige. Products are furniture, clothing, liquor,
hobbies, fancy cars.
Self-actualization needs
The desire for self-fulfillment, the desire to become all that one is capable of becoming. Products
are educational, art, sports, vacations, garments, foods. Maslow’s hierarchy is a good guide to
general behavior. The same consumption behavior can fulfill more than one need.
McGuire’s Psychological Motives
The classification of motives by McGuire is more specific and used more in marketing.
Need for consistency
People try to buy things which are consistent with their liking and taste. A sophisticated person
will be consistent in his choice of colors of clothing, paintings on the wall, color of rooms.
He would prefer sophisticated instead of flashy objects.
Need to attribute causation

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We often attribute the cause of a favorable or unfavorable outcome to ourselves or, to some
outside element. You can buy shoes by your choice and may not like them. It can be attributed
to you. If you buy a dress by the advise of your friends and companions, and do not like it, the
causes are attributed to other factors.
Need to categorize
The objects are categorized in a number of ways. The most popular is the price. Many products
are categorized at 499.00to keep them under Rs. 500. This is practiced in shoes mainly by Bata
and others.
Need for cues
These are hints or symbols that affect our feelings, attitudes, impressions, etc. For instance,
clothing can be a cue to adopt a desired lifestyle. The use of products can be enhanced by
providing proper cues to the purchasers.
Need for independence
Consumers like to own products which give them a feeling of independence, symbols like a
white bird flying may predict one to be free and independent.
Need for novelty
We sometimes want to be different in certain respects and want to be conspicuous. This is
evident in impulse purchasing or unplanned purchasing. We go in for novelty products, novelty
experiences. A different kind of travel with many novelties offered by a travelling agency.
Need for self-expression
We want to identify ourselves and go in for products that let others know about us. We may
buy a suit not only for warmth but also for expressing our identity to others.
Need for ego defence
When our identity is threatened or when we need to project a proper image, we use products in
our defence. Deodorants are used for ego defence. Mouthwash for fresh breath or, false teeth to
protect our image. We use hair dye to look younger better, etc. We rely on well-known brands
to give a correct social image of ourselves.
Need for assertion
These needs are fulfilled by engaging in those kind of activities that bring self-esteem and
esteem in the eyes of others. We can buy an expensive car which may be for esteem but, if it
does not perform well, we tend to complain bitterly. Individuals with a strong need for self

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esteem tend to complain more with the dissatisfaction of the product.
Need for reinforcement
When we buy a product which is appreciated by others, it reinforces our views, our behaviour,
our choice and we go in for repeat purchases. More products can be sold if their reinforcement
is greater by their purchases.
Need for affiliation
We like to use product which are used by those whom we get affiliated to. If one’s friend
appreciates and wears a certain brand then one also tries to use the same brands or objects for
affiliation. It is the need to develop mutually helpful and satisfying relationships with others.
Marketers use the affiliation themes in advertisements which arouse emotions and sentiments
in the minds of the consumers for their children and families.
Need for modeling
We try to copy our heroes and our parents and those we admire. We base our behaviour on the
behavior of others. Marketer’s use these themes for selling their product, i.e., “Sportsmen rely on
boost for their energy” and such captions are used regularlyand repeatedly.
Utilitarian and Hedonic Needs
Utilitarian needs are to achieve some practical benefit such as durability, economy, warmth
that define product performance. Hedonic needs achieve pleasure from the product they are
associated with emotions and fantasies is derived from consuming a product.A Hedonic need is
more experiential—The desire to be more masculine or feminine etc.Hedonic advertising appeals
are more symbolic and emotional. For utilitarian shoppers theacquiring of goods is a task
whereas for Hedonic shoppers it is a pleasurable activity. ShoppingMalls may be considered as
gathering places and consumers/buyers derive pleasure from theseactivities besides the selection
of goods.
Marketing Strategy Based on Motivation
Consumers do not buy products. They buy motive satisfaction or problem solutions. A person
does not buy a sofa set but he buys comfort. A person does not buy cosmetics but he buys hope
for looking good. Marketers therefore try to find the motives for buying, and build their products
and marketing mixes around these motives. A person may buy a product for a number of motives.
One of them could be rewarded for oneself or to self-indulge in them or for a gift. Multiple
motives are involved in consumption. Therefore, a marketer tries to find out:

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  the motive for buying,
 how to formulate a strategy to fulfill these motives, and
 how to reduce conflict between motives.
How to Discover Motives
This is found out by asking questions from the respondent. Some motives are disclosed by the
respondent; others are not divulged or are hidden. For instance, you ask a lady why she wears
designer jeans. She can say that
(a) they are in style
(b) they fit well
(c) they are worn by her friends. These motives are disclosed. Latent motives may not be
disclosed. These may be
 they show that I have money
 they make one look sexy and desirable
 they show I am young
 they project my slimness, etc
Motivational Conflicts
A consumer wants to fulfill a variety of needs by using a product, therefore, there are conflicts in
his mind as to which motive must be given more importance. It is a conflict which has to be
resolved. There are three types of motivational conflicts.
A. Approach-approach Motivational Conflict
There may be two acts of equally attractive choices to make. This can be reduced by the timely
release of an advertisement, so that both alternatives can be given importance. A consumer may
want a spacious car which is not large. A consumer may want a medium size fridge with a lot of
space inside or, a fridge with a deepfreeze—double door fridge. These two choices create a
conflict in the minds of the consumers.
B. Approach Avoidance Motivational Conflict
In this the consumer is faced both by positive and negative consequences in the purchase of
particular products. If one likes chocolates and is diabetic;this conflict can be solved by taking
sugar free chocolate, or in the case of Coca Cola-Diet free Coke may resolve the conflict.

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 C. Avoidance-avoidance Conflict
It faces the consumer with two undesirable consequences. Taking an injection once or, taking a
bitter medicine a number of times. This can be avoided by choosing a lesser painful alternative
according to the convenience of the consumer.
Involvement : Involvement is the intensity of interest with which consumers approach their
dealings in theMarket Place. Involvement characteristics:
(i) is related to consumer’s values and self-concept, which influences the degree of personal
importance as ascribed to a product or a situation.
(ii) Involvement can vary in individuals depending on different situations.
(iii) Involvement is related to some form of arousal.
Involvement can be of 3 types
(i) Routinised response behaviour or least involvement
(ii) Low involvement decision making
(iii) High involvement decision making
1. Routinised response behaviour or least involvement. In routinised response, we buy things
as a routine. These are products of daily use which keep buying almost every now and then.
These products have low or no involvement. Products such as soaps, tooth paste, blades, bread-
butter creams, these are of low values and involve no risk. Consumers can try various brands and
can keep changing brands according to their likes and dislikes.
2. Low Involvement Decision: These are decision in which some involvement is necessary.
These are higher value products and involve certain amount of risk. These products are not
bought everyday but after a few years or considerable period of time. These can be white goods,
like refrigerators, T.V., Sofa Sets, Computers, Steel Cupboards sometimes designer clothes and
suits.
3. High Involvement Decision Making: These decisions are very important as these products
are of very high value and involve a lot of risk and are bought once in a life time or a few times
in a life time. These can be expensive jewellery, like a solitaire, a house, an expensive car. While
choosing these items, the attributes of the product are taken into consideration. For instance in a
car we look for speed, economy, comfort, style, space, maintenance etc. In a house we look for
the location, the frontage the direction for north, south the locality

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the safety etc. All these attributes are considered and then the final decision is made. On the
lighter side while choosing your life partner or the spouse requires high involvement as one has
to spend one’s whole life with the spouse. His/her culture background, family occupation,
gentleness and other aspects are to be considered.
4.2. Personality and Consumer Behavior
4.2.1. Personality: Personality is another internal determinant which influences our consumption
pattern. We tend to use products that go with our personality. Personality may be defined as
those inner psychological characteristics that determine and reflect how a person responds
to his or her environment. Inner characteristics are those specific qualities and attributes traits,
factors, mannerisms that distinguish one person from another. Personality influences the
individual’s product choices and brand choices. It also responds to a firm’s promotional efforts
and, when and how they consume particular products or, services. By associating personality
characteristics with consumer behavior, a marketer can formulate marketing strategies in an
effective manner. Personality reflects individual differences. Therefore, we can categorize them
into groups on the basis of few traits, e.g., low sociability/high sociability, dull/bright, practical
vs. imaginative etc. Personality is consistent and enduring and is only one of the factors that
affect consumer behavior. Personality can change due to major life events. These could be birth,
death, marriage. It can also be changed by a gradual process.
Theories of Personality: Out of the many theories of personality, only few can be seen in
this course.
Trait Theory: A trait is defined as a predisposition to respond in a particular way. Traits are
used to define behavior of consumers. Cattell believes that traits are acquired at an early age, or
through learning, or are inherited. This theory is representative of multi-personality theories
(more than one trait influences
behaviour). Trait theory is based on certain assumptions, which are:
1. Traits are relatively stable characteristics
2. A limited number of traits are common to most people
3. The degree of traits possessed by an individual can be measured by using a rating
questionnaire in a continuum, on a 1 to 10 scale. There are a number of traits given by Cattell
and they are sixteen in numbers:
1. Reserved vs. Outgoing 2. Dull vs. Bright

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3. Docile vs. Aggressive 5. Unstable vs. Stable
4. Serious vs. Happy go lucky 6. Expedient vs. Conservative
7. Shy vs. Uninhibited 12. Self-assured vs. Self-respective
8. Tough-minded vs. Tender-minded 13. Conservative vs. Experimenting
9. Trusting vs. Suspicious 14. Group-dependent vs. Self-sufficient
10. Practical vs. Imaginative 15. Undisciplined vs. Controlled
11. Unpretentious vs. Polished 16. Relaxed vs. Tense
B.The Psychoanalytic Theory of Freud
Freud proposed that every individual’s personality is the product of struggle among three
interacting forces: These three are fully developed and are in a state of balance in a
healthy person. If any individual is underdeveloped, then this balance is disturbed and
there is dissatisfaction with the self and the world.
Id: It is a source of strong, basic and instinctive drives and urges which demand instant
gratification even at the cost of violating the norms of society. It demands instant
gratification— Pleasure Principle.
Ego: It operates on a reality principle, and seeks to achieve the pleasurable demands of
the id in as realistic a way as possible. It helps to develop cognition, and controls
impulsive behavior.
Super Ego: It is the individual’s moral code and helps in striving for perfection. Its
primary purpose is to restrain aggressive impulses of the id rather than seek to postpone
them, as does the ego. According to this theory, these three systems are fully developed
and are in a state of balance in a normal healthy person. But when one or more of these
systems are underdeveloped, then the internal balance is disturbed, which leads to
maladjustment and dissatisfaction.
Applications
Create fantasies about the product which is used as a basis for influencing consumers.
Marketers use flights of fantasy to propel people to buy their products. Hedonism is
anappeal to pleasure principle and this approach offers products for an affluent society.
Psychoanalytical theory appeals to the buyer’s dreams, hopes and fears. It can also
provide products which are rational and socially acceptable.Consumers have competing
desires and want to satisfy their wants. Marketers, therefore, create fantasies about the
product which is used as a basis for influencing consumers. Marketers use flights of

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fantasy to propel people to buy their products. Hedonism is an appeal to pleasure
principle and this approach offers products for an affluent society.
Psychoanalytical theory appeals to the buyer’s dreams, hopes and fears. It can also
provide products which are rational and socially acceptable.
C. Social-Psychological/Neo-Freudian Theory
It is of the view that social relationships are fundamental to the formation and
development of personality. So, consumers have been classified into three personality
groups: CAD Model
Compliant Individuals: Move towards others for the need of love, affection and
approval; are who prefer known brands.
Aggressive Individuals: Tend to move against others and are manipulative; feel a
high need for achievement, power, and success; prefer
specific brands, so that they can be noticed.
Detached Individuals: Move away from others: feel a need for self reliance,
independence and freedom; are east aware of brands.
Applications
 Different personality types of individuals tend to use different products and
brands.
 Compliant types prefer known products and brands, while aggressive types prefer
specific brands out of a desire to be noticed.
 Detached types appear to have the least awareness of brands.
 Emphasis on the social nature of consumption e.g., while advertising for personal
care products, care is taken not to offend any particular group. Products be
advertised which are used in social interactions or when in groups.
4.2.2. Self Concept
Self-concept can be described simply as how one perceives himself and his behavior in
the market place. It is the attitude one holds towards himself/herself. What one thinks of
himself/herself? The self concept is not very realistic because an unconcious component
is always present. Self-concept is a social phenomenon. It is an attitude to the self.
Consequently, the way we dress, the products we use, the services we require, depend on
how we want to perceive ourselves. There is a relationship between the self-image of a

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person and the product one wants to buy. Products act as symbols for consumers. People
like to use the products which match their personality. These include clothing, leisure
products, and personal care products. Marketers want an idea of the self-concept and the
image of the brand. First the consumers are asked to rate their self-concept on the
differential scale. Then they are asked to rate product brands on the same scales. The
responses that watch with the brands are expected to be preferred by consumers. After
matching the self-concept with the brand image, the individual tries to find productsfor
his satisfaction. If he is satisfied, his self-concept gets reinforced. The interaction
between the product and self-concept can be situation specific. In some situations, the
self-concept can be enhanced or reinforced to a lesser or higher degree. Marketers use
these tools as a guide to product and brand choices.
It can be divided into six types, as given below:
(i) Actual self: How a person actually perceives himself.
(ii) Ideal self:How a person would like to perceive himself.
(iii) Social self:How a person thinks others perceive him.
(iv) Ideal social self: How a person would like others to perceive him.
(v) Expected self:An image of self somewhere in between the actual and ideal self.
(vi) Situational self: A person’s self image in a specific situation.
4.3. Consumer Perception
We live in a world overflowing with sensations. Wherever we turn, we are bombarded by
a symphony of colours, sounds and odours. Some of the ‘notes’ in this symphony occur
naturally, such as the barking of a dog, the shadows of the evening sky or the heady smell
of a rose bush. Others come from people; the person sitting next to you might have dyed
blonde hair, bright pink jeans, and be wearing enough perfume to make your eyes water.
Consumers are never far from advertisements, product packages, radio and television
commercials, and advertising hoardings that clam our attention. Each of us copes with
this bombardment by paying attention to some stimuli and screening out others. When we
do make a decision to purchase, we are responding not only to these influences but to our
interpretations of them.

4.3.1. The Perceptual Process

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People undergo stages of information processing in which stimuli are input and stored.
However, we do not passively process whatever information happens to be present. Only
a very small number of the stimuli in our environment are ever noticed. Of these, an even
smaller number are attended to. And the stimuli that do enter our consciousness are not
processed objectively. The meaning of a stimulus is interpreted by the individual, who is
influenced by his or her unique biases, needs and experiences. These three stages of
exposure (or sensation), attention and interpretation make up the process of perception.
The stages involved in selecting and interpreting stimuli are illustrated in the following
figure, which provides an overview of the perceptual process.

Stimuli Sensation Meaning

 Sounds
 Sight Sensory Attention Interpret Response
 Smell Receptor ation
 Tests s
 Texture

Perception

Sensation refers to the immediate response of our sensory receptors (e.g. eyes, ears, nose,
mouth, fingers) to such basic stimuli as light, colour and sound.
Perceptual Selection: Because the brain’s capacity to process information is limited,
consumers are very selective about what they pay attention to. Perceptual selectivity
means that people attend to only a small portion of stimuli to which they are exposed.
Consumers practice a form of psychic economy, picking and choosing among stimuli, to
avoid being overwhelmed by advertising clutter. This over-abundance of advertising
stimuli highlights two important aspects of perceptual selectivity as they relate to
consumer behavior: exposure and attention.
Exposure is the degree to which people notice a stimulus that is within range of their
sensory receptors. Consumers concentrate on certain stimuli, are unaware of others, and
even go out of their way to ignore some messages.

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Attention is the degree to which consumers focus on stimuli within their range of
exposure. Because consumers are exposed to so many advertising stimuli, marketers are
becoming increasingly creative in their attempts to gain attention for their products.
Perception is the process by which these stimuli are selected, organized and interpreted.
We process raw data (sensation); however, the study of perception focuses on what we
add to or takes away from these sensations as we assign meaning to them. The subjective
nature of perception is demonstrated by a controversial advertisement developed for
Benetton. Because a black man and a white man were handcuffed together, the ad was
the target of many complaints about racism after it appeared in magazines and on
hoardings, even though the company has a reputation for promoting racialtolerance.
People interpreted it to mean that the black man had been arrested by a white man. Even
though both men are dressed identically; people’s prior assumptions shaped the ad’s
meaning. Of course, the company’s goal was exactly that: to expose us to ourown
perceptual prejudice through the ambiguity of the photo.
Interpretation: Deciding what things mean. Interpretation refers to the meaning
that people assign to sensory stimuli. Just as people differ in terms of the stimuli that they
perceive, the eventual assignment of meanings to these stimuli varies as well. Two people
can see or hear the same event, but their interpretation of it may be completely different.
4.3.2. Sensory System
External stimuli, or sensory inputs, can be received on a number of channels. We may see
an advertising hoarding, hear a jingle, feel the softness of a cashmere sweater, taste a new
flavour of ice cream or smell a leather jacket. The inputs picked up by our five senses
constitute the raw data that generate many types of responses.
Vision: Marketers rely heavily on visual elements in advertising, store design and
packaging. Meanings are communicated on the visual channel through a product’s size,
styling, brightness and distinctiveness compared with competitors.
Colour in the marketplace:Colors are rich in symbolic value and cultural meanings. For
example, the display of
Red, white and blue evokes feelings of patriotism for both British and French people.
Such powerful cultural meanings make colour a central aspect of many marketing
strategies. Color choices are made with regard to packaging, advertising, and even shop

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fittings. Indeed, there is evidence to suggest that some colors (particularly red) are
arousing while others (such as blue) are relaxing. The power of colors to evoke positive
and negative feelings makes this an important consideration in advertising design.
Smell:Odours can stir the emotions or have a calming effect. They can invoke memories
or relieve stress. Some of our responses to scents result from early associations with
otherexperiences. As one marketer noted, an example ‘is a baby-powder scent that is
frequentlyused in fragrances because the smell connotes comfort, warmth, and
gratification’.
Sound:Music and sound are also important to marketers. Consumers spend vast amounts
of money each year on compact discs and cassettes, advertising jingles maintain brand
awareness and background music creates desired moods. In a novel development,
greetings card manufacturers are prospering by selling consumers the ability to send their
own sounds to others: Hallmark Cards Inc. sells ‘Recordable Greetings Cards’ that allow
the sender to record a personal 10-second message on a microchip. The message plays
automatically when the card is opened.
Touch:Although relatively little research has been done on the effects of tactile
stimulation on consumer behaviour, 20 common observation tells us that this sensory
channel is important. Moods are stimulated or relaxed on the basis of sensations of the
skin, whether from a luxurious massage or the bite of a winter wind. Touch has even been
shown to be a factor in sales interactions. There are considerable cultural differences in
the world as well as within Europe concerning the appropriate amount and kind of
touching in interpersonal interactions. In general, northern Europeans touch less than
their southern European counterparts. Many British think the French shake hands
excessively.
Taste:Our taste receptors contribute to our experience of many products. Sensory
analysis is used to account for the human perception of sensory product qualities. One
study used sensory analysis to assess butter biscuits: the crispness, buttery-taste, rate of
melt, density, ‘molar packing’ (the amount of biscuit that sticks to the teeth) and the
‘notes’ ofthe biscuit, such as sweetness, saltiness or bitterness.

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4.4. Consumer Learning
Learning refers to a relatively permanent change in behavior which comes with
experience. This experience does not have to affect the learner directly: we can learn
vicariously by observing events that affect others. We also learn even when we are not
trying to do so. Consumers, for example, recognize many brand names and can hum
many product jingles, even for those product categories they themselves do not use. This
casual, unintentional acquisition of knowledge is known as incidental learning.Behavior
is both a non-observable activity as well as overt or open behavior which can be observed.
Learning is relatively a permanent change. Learning stresses our past experience. The
strength of learning can be intensively influenced by four factors which are importance,
reinforcement, repetition and imagery.
Importance: By this we mean how important the learning for the consumers about the
product is. If it is important for you to learn about cameras before you buy one, it reflects
a high involvement situation.
Reinforcement: Reinforcement is something that increases the likelihood of a response
to be repeated in future. Reinforcement can be positive or negative. By positive
reinforcement we mean a desired consequence. One feels happy after buying the product.
One uses a product, feels happy, and repeats the procedure.
Repetition: Repetition increases the speed of learning. If a TV commercial is flashed a
number of times, it will register more in the minds of consumers. The exposure must
carry important and interesting information.
Imagery: By this we mean whether the advertisement is substantiated or accompanied by
images. We have brand symbols, names, etc. We have messages substantiated by pictures.
The pictures along with the images have a greater impact and can be registered more
intensely.
Types of Learned Behaviour
Almost all types of behaviour we exhibit has been learned.
(1) Physical behavior: The way we walk and talk and conduct ourselves and interact
with others. Some adopt the behaviour of celebrities, film stars and is termed modeling.
(2) Symbolic learning and problem solving: Symbols convey meanings. Symbols and
brand names communicate. These are Kodak, Mac Donalds, Diet Papsi etc. Problem

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solving also by thinking and insight. Thinking involves mental manipulation of symbols
to form various combinations and meanings. This leads to insight which is the new
understanding of relationship involved in the problem. These factors allow consumers to
mentally evaluate the product without purchasing them. A person may evaluate a burglar
alarm for car. They realise that at home it is parked in a locked garage and in the office in
a secured parking. Hence, the burglar alarm is not required and postpones his decision of
buying.
(3) Affective learning:This comes by experience and by using the products. One learns
about the product and this goes into his memory.
4.4.1. Behavioral Learning Theories: Behavioral learning theoriesassume that learning
takes place as the result of responses to external events. Psychologists who subscribe to
this viewpoint do not focus on internal thought processes. Instead, they approach the
mind as a ‘black box’ and emphasize the observable aspects of behavior, as depicted in
the following figure.

Consumer
Stimulus Response

A. Classical Conditioning: Classical conditioning occurs when a stimulus that

elicits a response is paired with another stimulus that initially does not elicit a
response on its own. Over time, this second stimulus causes a similar response
because it is associated with the first stimulus. This phenomenon was first
demonstrated in dogs by Ivan Pavlov, a Russian physiologist doing research on
digestion in animals. Pavlov induced classically conditioned learning by pairing a
neutral stimulus (a bell) with a stimulus known to cause a salivation response in
dogs (he squirted dried meat powder into their mouths). The powder was an
unconditioned stimulus (UCS) because it was naturally capable of causing the
response. Over time, the bell became a conditioned stimulus (CS): it did not
initially cause salivation, but the dogs learned to associate the bell with the meat
powder and began to salivate at the sound of the bell only. The drooling of these
canine consumers over a sound, now linked to feeding time, was a conditioned

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 response (CR), just as Mario’s dog Raphael begins to get excited hearing
hismaster’s Fiat 126 coming close to home.
B. Operant Conditioning: Operant conditioning, also known as instrumental
conditioning, occurs as the individual learns to perform behaviors that produce
positive outcomes and to avoid those that yield negative outcomes. This learning
process is most closely associated with the psychologist B.F. Skinner, who
demonstrated the effects of instrumental conditioning by teaching animals to dance,
pigeons to play ping-pong, and so on, by systematically rewarding them for desired
behaviors. While responses in classical conditioning are involuntary and fairly simple,
those in instrumental conditioning are made deliberately to obtain a goal and may be
more complex. The desired behavior may be learned over a period of time, as
intermediate actions are rewarded in a process called shaping. For example, the owner
of a new shop may award prizes to shoppers just for coming in, hoping that over time
they will continue to drop in and eventually buy something. Operant conditioning
(instrumental learning) occurs in one of three ways.
 When the environment provides positive reinforcement in the form of a reward,
the response is strengthened, and appropriate behavior is learned.
 Negative reinforcement also strengthens responses so that appropriate behavior
is learned. A perfume company, for example, might run an ad showing a woman
sitting alone on a Saturday night because she did not use its fragrance.
 In contrast to situations where we learn to do certain things in order to avoid
unpleasantness, punishment occurs when a response is followed by unpleasant
events (such as being ridiculed by friends for wearing an offensive-smelling
perfume).
4.4.2. Cognitive Learning Theory
Cognitive learning occurs as a result of mental processes. In contrast to behavioral
theories of learning, cognitive learning theory stresses the importance of internal mental
processes. This perspective views people as problem-solvers who actively use
information from the world around them to master their environment. Supporters of this
viewpoint also stress the role of creativity and insight during the learning process.
Observational learning occurs when people watch the actions of others and note the

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reinforcements they receive for their behaviors. This type of learning is a complex
process: people store these observations in memory as they accumulate knowledge,
perhaps using this information at a later point to guide their own behaviors. This process
of imitating the behavior of others is called modeling. In order for observational learning
in the form of modeling to occur, four conditions must be met:
1. The consumer’s attention must be directed to the appropriate model who, for reasons
of attractiveness, competence, status or similarity, it is desirable to emulate.
2. The consumer must remember what is said or done by the model.
3. The consumer must convert this information into actions.
4. The consumer must be motivated to perform these actions.
4.4.3. Marketing Applications of Learning Principles
Understanding how consumers learn is very important to marketers. After all, many
strategic decisions are based on the assumption that consumers are continually
accumulating information about products and that people can be ‘taught’ to prefer some
alternatives over others.
Behavioral learning applications: Many marketing strategies focus on the
establishment of associations between stimuli and responses. Behavioural learning
principles apply to many consumer phenomena, ranging from the creation of a distinctive
brand image to the perceived linkage between a product and an underlying need. For
instance, The transfer of meaning from an unconditioned stimulus to a conditioned
stimulus explains why ‘made-up’ brand names like Marlboro, Coca-Cola or IBM can
exert such powerful effects on consumers. The association between the Marlboro Man
and the cigarette is so strong that in some cases the company no longer even includes the
brand name in its ad.
Applications of stimulus generalization:The process of stimulus generalization is often
central to branding and packaging decisions that attempt to capitalize on consumers’
positive associations with an existing brand or company name, as exemplified by a
hairdressing establishment called United Hairlines. In one 20-month period, Procter &
Gamble introduced almost 90 new products. Not a single product carried a new brand
name. In fact, roughly 80 per cent of all new products are actually extensions of existing
brands or product lines. Strategies based on stimulus generalization includethe following:

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  Family branding: in which a variety of products capitalize on the reputation of a
company name. Companies such as Philips and Sony rely on their positive
corporate images to sell different product lines.
 Product line extensions: in which related products are added to an established
brand. Dole, which is associated with fruit, was able to introduce refrigerated
juices and juice bars, while Sun Maid went from raisins to raisin bread. Other
recent extensions include Woolite rug cleaner, and the various models of Nike Air
shoes.
 Licensing: in which well-known names are ‘rented’ by others. This strategy is
increasing in popularity as marketers try to link their products and services with
well established figures. Companies as diverse as McDonald’s and Harley-
avidson have authorized the use of their names on products. Japan Airlines
recently licensed the rights to use Disney characters, and, in addition to painting
Mickey Mouse and Donald Duck on several of its planes, the carrier is requiring
its flight attendants to wear mouse ears on some domestic flights.
 Marketers are increasingly capitalizing on the public’s enthusiasm for films
andpopular TV programmes by developing numerous product tie-ins.
 Lookalike packaging: in which distinctive packaging designs create strong
associationswith a particular brand. This linkage is often exploited by makers of
generic or private-label brands who wish to communicate a quality image by
putting their productsin very similar packages.
Applications of stimulus discrimination:An emphasis on communicating a product’s
distinctive attributes vis-à-vis its competitors is an important aspect of positioning, in
which consumers learn to differentiate a brand from its competitors. This is not always an
easy task, especially in product categories where the brand names of many of the
alternatives look and sound alike. For example, one survey showed that many consumers
have a great deal of trouble distinguishing between products sold by the top computer
manufacturers. With a blur of names like OmniPlex, OptiPlex, Premmia, Premium,
ProLinea, ProLiant, etc., this confusion is not surprising.
Marketers have many ways of reinforcing consumers, ranging from a simple thank you
after a purchase to substantial rebates and follow-up phone calls. A popular technique

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known as frequency marketingreinforces regular purchasers by giving them prizes with
values that increase along with the amount purchased. This operant learning strategy was
pioneered by the airline industry, which introduced ‘frequent-flyer’ programmes in the
early 1980s to reward loyal customers. Well over 20 per cent of food stores now offer
trading stamps or some other frequent-buyer promotion. Manufacturers in the fast-
moving consumer goods (FMCG) category also makeuse of this technique in food stores.
4.4.4. The Role of Memory in Learning
“Your mind is like a camera with a memory, it can take several pictures, which you can
file forsubsequent use.” Consumer memory is a vast personal storehouse of knowledge
about products,services, shopping excursions, and consumption experiences. In essence,
memory reflects our prior knowledge. Retrieval is the process of remembering or
accessing what we have stored in memory.Consumers have prior learning experiences,
which are accumulated in their minds. The total accumulation of past experiences are
known as memory. Memory can be divided into short-term memory or long-term memory.
Short-term memory: It is the memory which can be recalled immediately and, is
activated and in use. It can also be referred to as the working memory, which one can
work with and refer to, whenever required. Short-term memory can give continued
repetition of a piece of information that can be used for problem solving. Elaborate
activities make use of previously stored experiences, values attitudes, beliefs and feelings,
to interpret and evaluate information and add new elements to memory.
Long-term memory: It is a permanent storage in the minds of the consumer. It is active
and can store a variety of information consisting of concepts, decisions, rules, processes,
affective states, etc. This is important to the marketer because an image of a brand and
the concepts that a consumer had heard about a brand, are made up of various elements
and the consumer can have a lot of meanings attached to the brand, when the particular
brand is mentioned. Others classify memory in three where the first two are known as
short term and the last one as long term memory.
A. Sensory Memory:The ability to store sensory experiences temporarily as they are
produced is called sensory memory. Sensory memory uses a short-term storage
area called the sensory store. Sensory memory operates automatically, and if we
quickly switch ourattention to our sensory store, we may be able to interpret what

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 is in it. Our sensory store can house information from any of the senses, but
echoic memory—memory of things we hear—and iconic memory—sensory
memory of things we see—are the most commonly studied.
B. Short-Term Memory:Short-term memory (STM) is the portion of memory
where we “encode” or interpret incoming information. The processes of knowing
and understanding occur in short-term memory. As you read this book, you are
using your short-term memory to comprehend what you read. You also use short
term memory when you watch a TV commercial or make a decision in a store.
Short-term memory is very important because it is where most of our information
processing takes place. Short-term memory can be hurt when we are distracted by
other information.
C. Long-Term Memory:Long-term memory (LTM) is that part of memory where
information is permanently stored for later use. Research in cognitive psychology
has identified two major types of long-term memory: autobiographical and
semantic memory.
Marketing Implications:Marketers can apply chunking, rehearsal, recirculation, and
elaboration to help consumers remember their brands, communications, or offerings.
Chunking: Marketers can increase the likelihood that consumers will hold information in
short-term memory and transfer it to long-term memory by providing larger bits of
information that chunk together smaller bits. For example, acronyms reduce several
pieces of information to one chunk. Brand names like KFC and H&M are examples of
chunking in a marketing context. Similarly, marketers can facilitate consumers’ memory
for telephone numbers by providing words rather than individual numbers or digits (800-
GO-U-HAUL). Advertisements might draw conclusions that summarize or chunk
disparate pieces of information into a single attribute or benefit. An ad that discusses a
food product’s calorie, fat, sodium, and sugar contentmight chunk this information into a
conclusion about the product’s healthfulness.
Rehearsal: When motivation is low, marketers may use tactics such as jingles, sounds,
and slogans to perpetuate rehearsal. Under Armour, which makes sports apparel, created
ads featuring men’s cleats making distinctive click-clack sounds and the slogan “Click-
Clack: I think you hear us coming. Sometimes these techniques work too well, as you

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may know from going through the day singing a commercial’s jingle. Rehearsal is not
always good for marketers.
Recirculation:Recirculation is an important principle for marketing because it explains
why repetition of marketing communications affects memory, particularly in low-
involvement situations. Marketers can strengthen the effect of recirculation by creating
different ads that repeat the same basic message. To illustrate, a slogan like “Chevy, an
American revolution” is likely to be memorable after you have beenexposed to it on
many occasions, even though the ad content may change over time.
Elaboration:Several strategies familiar from previous chapters enhance the likelihood
that consumerswill elaborate on information. For example, unexpected or novel stimuli
can attract attention and induce elaboration. GEICO’s unusual choice of a gecko as
spokescharacter for its insurance is intended to make consumers think about the
connection . Also, an advertising agency study indicates that consumers who pay
attention to a particular TV program and think about it are more likely to remember its
commercials. Older people may have less ability to elaborate on information from
marketing messages, perhaps because their short-term memory is more limited.
4.5. Consumer Attitude Formation and Change
Consumers of all products are engaged in low, medium and high involvement
informationsearch. There are various questions to be considered.
 How do consumers choose among brand alternatives?
 Do they use any choice rules?
 Do they select best alternatives or reject bad ones?
 How do they find their way amidst many brand alternatives with different
attributes?
People have different attitudes (bent of mind) for different products, e.g., many
consumers think of plastic to be cheap, artificial, weak, breakable, non-degradable,
environmentally harmful and not desirable. They have a negative attitude and discourage
the use of plastics. Plastics also create positive attitudes, as it is light, unbreakable, easy
to carry, handy. People do not dislike plastics, but do not know what to do with it after
using it. Attitude is the way we think, we feel and act towards some aspect of the
environment. Itis an overall evaluation that expresses how much we like or dislike an

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object, issue, person, or action. Attitudes are learned, and they tend to persist over time.
Our attitudes also reflect our overall evaluation of something based on the set of
associations linked to it. This is the reason why we have attitudes toward brands, product
categories, ads, people, stores, activities, and so forth.
Initiator Component Component Attitude
Evaluation Manifestation
Emotions or feelings
Affective Overall
Stimuli about attribute and
products overall object orientation
situations towards
retail outlets Cognitive Beliefs about object
sales person specific attribute
advertising,
etc.
Behavioral Behavioral intentions
with respective to
specific attribute

As attitude is a learned predisposition to respond in a constant favorable or unfavorable

manner,in respect to a given object, marketers try to bombard consumer with information.
These may have positive or negative effects. An attitude provides a series of cues to
marketers. They predict future purchases, redesign marketing effort and make attitude
more favorable. Attitudes indicate knowledge, feelings and intended action for the given
stimulus. Attitude has four major functions:
A. Utilitarian Function: In building a favourable attitude towards a product,
utilitarian function plays an important part. It guides consumers in achieving their
desired needs and avoiding failure and disappointment, e.g., desire for hi-tech
products or after sales service may be the priority of the customer. Customer
builds a favourable attitude if he is satisfied with the function, e.g., safety,image
etc.
B. Ego Defensive Function: Individuals are attracted towards products that give
them protection and enhance their image in a society. It protects consumers
against internal and external anxieties and environment. Here marketing stimuli
and more particularly products become an instrument of the protection process,
e.g., visible prestige products, mouthwash, deodorants, perfumes, make an

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 individual more acceptable in a gathering, e.g., mouthwashes are used to avoid
anxiety producing situations. Creams are used for removing pimples from the face.
C. Value Expressive Function: This helps to maintain self-identity among
consumers and lead them to expression and determination, e.g., Gandhian
followers—select handloom and khadi clothes. Consumer openly expresses
opinions that reflect their belief and self concept.
D. Knowledge Function: The knowledge that high cholesterol food is not good for
health. Consumers want to uphold the values they stand for. As a member of a
club, one has to conform to the attire prescribed by that club.
Structural Models of Attitudes: Motivated by a desire to understand the
relationship between attitude and behavior, psychologists have sought to construct
models that capture the underlying dimension of an attitude. Among the several
attitude models , the following are examined for our case.
A. Tri-component Attitude Model: According to the tri-component
attitude mode), attitudes consist of three major components: a cognitive
component, an affective component, and a conative component.
i)The Cognitive Component: The knowledge and perceptions that are acquired
by a combination of direct experience with the attitude object and related
information from various sources. The first part of the tri-component attitude
model consists of a person's cognitions, that is, the knowledge and perceptions
that are acquired by a combination of direct experience with the attitude object
and related information from various sources. This knowledge and resulting
perceptions commonly take the form of beliefs; that is, the consumer believes that
the attitude object possesses various attributes and that specific behavior will lead
to specific outcomes.
ii) The Affective Component: is a consumer's emotions or feelings about a
particular product or brand. A consumer's emotions or feelings about a particular
product or brand constitute the affective component of an attitude. These emotions
and feelings are frequently treated by consumer researchers as primarily
evaluative in nature; that is, they capture an individual's direct or global
assessment of the attitude object (i.e., the extent to which the individual rates the

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 attitude (object as "favorable" or "unfavorable," "good" or "bad").Affect-laden
experiences also manifest themselves as emotionally charged states (e.g."
happiness, sadness, shame, disgust, anger, distress, guilt, or surprise). Research
indicates that such emotional states may enhance or amplify positive or negative
experiences and that later recollections of such experiences may impact what
comes to mind and how the individual acts. In addition to using direct or global
evaluative measures of an attitude object, consumer researchers can also use a
battery of affective response scales (e.g., that measure feelings and emotions) to
construct a picture of consumers' overall feelings about a product, service, or ad.
iii)The Conative Component: The likelihood or tendency that an individual will
undertake a specific action or behave in a particular way with regard to the
attitude object. The conative component may include the actual behavior itself. In
marketing and consumer research, the conative component is frequently treated as
an expression of the consumer's intention to buy. Buyer intention scales are used
to assess the likelihood of a consumer purchasing a product or behaving in a
certain way.
B. Multi-Attribute Choice Model: is an attitude models that examine the
composition of consumer attitudes in terms of selected product attributes or beliefs.
Multi-attribute attitude models portray consumers' attitudes with regard to an attitude
object (e.g., a product, a service, a direct-mail Catalog, or a cause or an issue) as a
function of consumers' perception and assessment of the key attributes or beliefs held
with regard to the particular attitude object.
i) The Attitude-Toward-Object Model: Attitude is function of evaluation of
product-specific beliefs and evaluations. The attitude-toward-object model is
especially suitable for measuring attitudes toward a product (or service) category or
specific brands. According to this model, the consumer's attitude toward a product or
specific brands of a product is a function of the presence (or absence) and evaluation
of certain product-specific beliefs and/or attributes.
ii) The Attitude-Toward-Behavior Model: is the attitude toward behaving or acting
with respect to an object, rather than the attitude toward the object itself. The attitude-
toward-behavior model is the individual's attitude toward behaving or acting with

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 respect to an object rather than the attitude toward the object itself. The appeal of the
attitude-toward-behavior model is that it seems to correspond somewhat more closely
to actual behavior than does the attitude-toward-object model.
iii) Theory-of-Reasoned-Action Model: is a comprehensive, integrative model of
attitudes. The theory of reasoned action represents a comprehensive integration of
attitude components into a structure that is design to lead to both better explanation
and better predictions of behavior. Like the basic tri-component attitude model, the
theory-of-reasoned action model incorporates a cognitive component, an affective
component, and a conative component; however, these are arranged in a pattern
different from that of the tri-component model. In accordance with this expanded
model, to understand intention we also need to measure the subjective norms that
influence an individual's intention to act. A subjective norm can be measured directly
by assessing a consumer's feelings as to what relevant others (family, friends,
roommates" co-workers) would think of the action being contemplated; that is, would
they look favorably or unfavorably on the anticipated action?
C. Theory of Trying-To-Consume Model: is an attitude theory designed to
account for many cases where the action or outcome is not certain but instead reflects the
consumer's attempt to consume (or purchase).There has been an effort underway to
extend attitude models so that they might better accommodate consumers' goals as
expressed by their "trying" to consume. The theory of trying to consume is designed to
account for the many cases in which the action or outcome is not certain but instead
reflects the consumer's attempts to consume (i.e., purchase). A classic example of trying
("got") to consume is attempting to diet and lose weight.
D. Attitude-Toward-The-Ad Models: is a model that proposes that a consumer forms
various feelings (affects) and judgments (cognitions) as the result of exposure to an
advertisement, which, in turn, affects the consumer's attitude toward the ad and attitude
toward the brand. In an effort to understand the impact of advertising or some other
promotional vehicle (e.g., a catalogue) on consumer attitudes toward particular products or
brands, considerable attention has been paid to developing what has been referred to as
attitude toward the ad models. A positive relationship between attitude toward the

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advertisement and purchase intention for each of the advertised products; that is, if
consumers "like" the ad, they are more likely to purchase the product.
3.6. Communication and Consumer behavior
Although there are many definitions of communication, many marketers agree that
communication is the transmission of message from a sender to a receiver via a medium (or
channel) of transmission. It is two-way process of reaching mutual understanding, in which
participants not only exchange (encode-decode) information, news, ideas and feelings but
also create and share meaning. There are five components of communications. These are the
sender, the receiver, the medium, the message and the feedback.

A. The Sender: The initiator of the communication can be a formal or informal source.
It is anyone who wishes to convey an idea or concept to others, seek information, or
express a thought or emotion. A formal communication source is likely to represent
either a for-profit (commercial) or a not for profit organization. An informal source
can be a parent or a friend who gives product information or advice. Consumers on
rely on informal communication sources in making purchase decisions because unlike
formal sources, the sender is perceived as having nothing to gain from the receiver’s
subsequent action. For this, words of mouth communication can be persuasive. The
factors that affect the source are
 Credibility of formal source
 Credibility of informal source
 Credibility of spokes person
B. The Receiver: is the party receiving the communication. The party uses the channel
to get the communication from the transmitter. The receiver of a formal marketing
communication is a targeted prospect or a customer (members of the marketer target
audience).A number of factors affect the receiver of the message. These include
 Personal characteristics and comprehension
 Involvement and congruity
 Mood
 Barriers to communication
 Selective exposure to message
 Psychological noise

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C. The medium:No sooner a message is created by a sender, it enters in the channel.
The channel is part of the communication process which helps carry the message to
its desired destination. In case of printed words paper is the channel, in the matter of
voice air may serve as a channel. In telephonic conversation the wire and the sets
make the channel. Some times the channel itself becomes part of message and
sometimemessage is sent in a manner that a part of it serves as a channel. Mass media
are also classified as
 Print media ( newspaper, magazine, bill board)
 Broad cast media (Radio, televisions)
 Electronic media ( Internet)
D. The Message:When sender – the source of communication, decides to communicate
he/she encodes the crux of the feeling in words/gestures or any other form commonly
understood. This encoded form is called message. It may be a simple word or a very
complex and technical integration of feelings by the source on a given subject. The
message can be a verbal (written or spoken) or non verbal (a photograph, an
illustration, or a symbol) or a combination of two.
E. Feed back: Sending and receiving of message is a simultaneous process in which the
receiver continuously sends back its approval or disapproval after having interpreted
the message. This helps the sender to modify or discipline its message. This element
in the communication process is referred as feedback. For instance a person is
delivering speech, the voices, gestures and facial expressions – all part of feedback,
would help thespeaker to check its loudness, smiles, rhetoric, contents or time to
speak. If there is no feedback, the original message may never shape accordingly
which may distort the whole communication exercise.

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