Consumer behaviour notes full @ mab marketing

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Consumer behaviour notes full @ mab marketing

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Consumer behaviour notes full @ mab marketing

  1. 1. B S PatilConsumer BehaviourIntroductionConsumption is a part of almost every facet of our lives. This is true whether we havea lot of money or very little. In some cases the prevalence of consumption is such thatwe are often unaware of its importance in shaping our livesThe study of people of as consumersThe main focus so far has been markets looking to increase sales. They would want toknow how social and behavioural sciences could be utilised to find specific causes ofconsumption and what makes consumers choose one brand over another, as well ashow consumption would react to improvements in a product or brand.The focus upon predicting what the consumer will do under certain specifiedconditions is known as the positivist approach. The positivist approach takes thetraditional form of scientific research it focuses upon the following points: 1. All behaviour has objectively identifiable causes and effect that can be studied and measured. 2. When faced with a problem people process all the relevant information available to deal with it. 3. After processing this information people make rational decision about the best choice.As with all social sciences studies there are limitations leaving a large amount ofhuman behaviour unaccounted for.Reductionist ApproachBecause consumption is such a universal activity and is very frequent, there is atemptation to see all human activity in consumer terms, and to view all consumeractivity with a positivist lens.Meaning a relationship as described in terms of the provision e.g. a doctor providing aservice and his patient being the client.What is missing is the psychological content of the relationship e.g. why the doctorcares so much – why the teacher does the extra hours at work etc. B S Patil 1
  2. 2. B S PatilInterpretivist Approach This combines the positivist and reductionist approach. 1. Cause and effect can’t be isolated as there is no single objective reality that can be agreed upon. 2. Reality is an individual’s subjective experience of it each consumer experience is unique 3. People are not simply, or always rational information processors or decision makers because this view takes no account of the individual emotional life (fantasy, fun etc)Consumer, Buyers and CustomersPeople do not always buy goods or services for their own use. E.g. a mother shoppingin the supermarket for her family, she will be influenced to some extent by what herfamily like to eat. She will probably buy things for them that she herself will notconsume. She is also subject to some point of sale influences as individuals buyingthemselves e.g. packaging, price quality, packaging etc. So it is important to know whobuys the product as well as who consumes it (for sellers).A consumers is a more general term e.g. people buying groceries rather than forpeople shopping for a specific item in a specific shop.Consumer BehaviourInvolves the buyers or customers of products, as well as the people who actually usethem. It deals with the buying decision itself and far beyond. Its extends from:How do we know what we want to what do we do with something we no longer want?How do we get into a product?How do we assess alternatives?Why do people choose or not choose product?How do we decide on value for money?How much risk do we take with what products?Who influences our buying decision and our use of the product?How can brand loyalties form and can they be changed? B S Patil 2
  3. 3. B S PatilThe typical definition of consumer behaviour that people engage in when selecting,purchasing, using, disposing of products and services so as to satisfy their needs anddesires.The consumer environment and the consuming societyThe ever increasing consumption is considered good for our prosperity. A fall in salesis taken as bad news. We are bombarded by hundreds of advertisements every dayencouraging us to buy.We are bombarded by hundred of advertisements every day encouraging us to buymore. The most important feature of the consumer environment therefore is theuniversal and all encompassing value that buying is not just a necessary activity but anattractive and highly approved way of behaving; a good in itself. If consumingproduces an ever higher standard of living for more and more people what couldpossibly be wrong with it?What about the earth’s resources? Is there enough for more and more consumption?Is it a morally just way of arguing the world’s resources, why should the rich get morefood or manufactured goods than the poor?The consumer and the market placeTrade is an integral part of human behaviour and has been since the beginning of time.“Exchange between producer and consumer for neutral benefit”Originally a barter systems, then precious metal coins were introduced, then as tradegrows paper notes were introduced, and then plastic cards followed.Markets and MarketingProduction orientation Demand exceeds supply. Consumers are forced to buy whatthere is rather than what they want. E.g. Ford any colour as long as it’s black.Marketing concept The producer identifies the needs, wants and preferences of theconsumer and then satisfies them better than the consumer would. Supply exceedsdemand.Summary B S Patil 3
  4. 4. B S PatilConsumer behaviour is an integral part of our daily lives. The psychological and socialprocess involved in the buying and consuming goods and services.The objective, positivist approach to studying cause and effect in consumer behaviourwill be combined with the interpretivist emphasis on trying to understand, theemotional, non rational aspects of the process.The environment which the consumer operates in including the nature of the marketplace for goods and services also needs to be considered. Finally the change from aproduction orientation to a marketing concept has been instrumental in fostering thestudy of consumer behaviour recent decades.Market SegmentationThe development of the marketing concept provides a focus for a changing producerorientation from one of unthinking control and dominance of the producer –consumerrelationship to one of greater sophistication.Market segmentation is generally regarded as the essence of the marketing concept.Products like GM Cars (e.g. the 3 stages of an automobiles life journey) need to bepositioned in a product market positioning are closely aligned with segmentation.The position of a product reflects how consumers perceive it. The perceived benefitsof the product to the end user will be used as a key part of the promotional strategy.This implies the marketer will first segment the market and identify to the preferredtarget. Attempting to position without segmentation will be pointless.Computers can be enhanced or are now advanced enough to enable marketers togenerate lists of individuals in their target market segment and send thempersonalised communication based on their demographics information. This processis called the “Segmentation of One” this actually represents a return to the relationshipbetween producer and consumer before the advent of mass production and massmarketing.For a segmentation to work there must be a number of constitutions to consider:Identity - how identifiable and distinguishable from other consumers is a prospectivesegment and how easy is it to obtain the necessary information on such people?Access - how easy is it to reach people in this segment with the marketingcommunications?Size – does the number of the people in the segment and their purchasing powerjustify the cost of marketing to them? B S Patil 4
  5. 5. B S PatilTypes of segmentationGeographic Segmentation - Operates that people living in a given location havesimilar needs, wants and preferences that differ from people living in another location.There are limits e.g. Everyone drinks coke and due to the internet and satellitecommunication geographic boundaries are now obsolete. Micromarketing – Is whereby different regions have different tastes. E.g. Campbellssoup in the US or spicer food in California.Climatic variations – will also be applicable to geographic segmentation. E.g. there isgreater demand for swimming pools in Florida than in Glasgow. In the UK water issofter in Scotland than in England, this has implications for soap, shampoo, etcmarketing water softness.From a consumer point of view most buying behaviour is local, e-commerce and mailorder being the exceptions.Localised consumer behaviour is often expressed through the presence of significantlylarge cultures or sub cultural group that is different from the main stream e.g. thespicer nachos in California – due to larger Hispanic people there. Sometimes a localculture maybe marketed more widely like Jewish bagel or Indian food from Birmingham.Some locations just have “oddities” e.g. more sweets eaten per capita in Scotland thanEngland, more Irn Bru etc. Obviously useful to know form a marketing point of view.Advertising to e.g. a geographic sector can be a more cost effective way of reaching atarget market.Store specific marketing should also be considered, this takes place in stores.Demographic segmentation – deals with way of categorising statistically the people inthe total national population e.g. age, sex, income, education, occupation, social class,family, size, race and religion. These are essentially the different ways of viewing thesame consumer. Different aspects to our identity will be relevant at different timese.g. baby food.Trends that influence most of the industrialised world - The aging population - the grey pound - Baby boom generation are now middle aged - The proportion of young people in the population 15-20 is declining B S Patil 5
  6. 6. B S Patil - Household sizes have declined – 1 person household - Woman have fewer children and when they do they do it later lifeTypes of demographic segmentationAge: People of the same age usually have the same needs, wants and interests, peoplehowever perceive themselves from being a different age than they are.Sex: Some barriers are changing here as society changes e.g. diy kits to girls. Womenstill the main buyers of baby products. Men may buy underwear for women onoccasion.Socio-economic status (SES): Made up of education, income and occupation. Incomeis usually considered to be the most important SES variable because it is so easilymeasured.Geo-demographic segmentation: Dividing up markets according to neighbourhoode.g. London, a different range of products will appeal to people in Millwall than St.Johns Wood.PRIZM in the US divides people or households in up to 40 categories. It establishes SESrating for each neighbourhood e.g. “blue blood estate” where the most affluentAmerican families live to “Public Assistance” inner City. Along the way rural and othersuburban.ACORN is another similar thing in the UK.Psychological Lifestyle segmentation (Consumer Profiles)Divides consumers into segments based on activities, interests, and opinions. TheAmerican market is divided into 10 categories. Creating broadly defined categories e.g.“Thelma” traditional church goer – Eleanor “socialite” with associated habits andspending patterns.All life styles/psychological systems are open to criticism; mainly not everyone fallsinto ten categories.Needless to say studies can be good starts to segmentation- there could be tweakingon a per product basis. Lifestyle, psychographic, psychological, segmentation useconsumer profiles.Segmentation by usageThis form of segmentation is based on information about volume and frequency ofpurchase for a given product. B S Patil 6
  7. 7. B S PatilIt uses Electronic Point of Sale (EPOS) systems to gather information. The market isdivided into users and non users e.g. McDonalds. The 80-20 rule is in effect for mostproducts. Time and timing is also an important factor e.g. students, offered incentivesto open bank accounts as the back knows they will need mortgages etc later down theline.Benefit segmentationBased on knowledge of the benefits that consumer seeks from a product. Customisinga product by a producer as far as possible is the ultimate aim of Benefit segmentation.Or customise belt buckles in London.SummaryMarket segmentation begins when producers realise they could no longer sell whateverthey produced but had to begin competing for business. The best market condition forsuccessful segmentation seems to be based on:IdentifabilityAccessibilitySizeFive forms of segmentation were identified: - Geographic - Demographic - Psychological - Segmentation as a benefit - Segmentation by use B S Patil 7
  8. 8. B S PatilA lot of work has been done on psychological segmentation producing variousattempts at classifying consumers according to personality factors.There are constantly new products coming onto the market – the exact number isunquantifiable. Estimated failure rates of these new products is also large 80% - 90%.How new products and innovations are marketed and how consumers respond to them.Developing New ProductsThere are more failures than success (+75%) and even the biggest and most successfulcompanies have them. For example Sony Betamax, Ford Edsel, these companies werelarge enough and had enough profitable lines in existence to absorb losses, but manysmaller companies would go bankrupt.Pressures that lead companies to the development of new productsDeclining birth rate in the industrialised world – new products have to be sold moreand more therefore to existing customers.Technological Innovation – in all areas of goods and services that companies have tobe aware and adapt to them.Pressure of organisation - changes is renewal innovation isn’t a luxury it’s universalnecessity.Total product concept B S Patil 8
  9. 9. B S PatilTheodore Levitt see a product as being a combination of various attributes thatincrease in complexity through four levels. 1. Generic product The substantive context (the car, the shoes, the hamburger, life insurance) that forms the core of the product that reaches the market. 2. Expected product The generic attributes plus the buyers minimal expectation of it (price, packaging, delivery and so on). 3. Augmented product The generic attribute plus the attributes that differentiate the product from its competitor e.g. free gift, features etc. 4. Potential product Generic, expected and augmented attributes plus and plus is where the new products and innovations come in. So the potential product is what is possible but not yet attained.Successful innovationThe most potent secret lies in changing some aspect however small, of the way societyis organised, which results in satisfying a demand that consumers were perhapsunaware that they had. The supermarket is a good example of this, it changed the waypeople shopped, ate and travelled. A single outlet out of town, that could supply allof the consumer’s food. This made shopping become a major weekly exercise for manyhouseholds rather than a daily routine, people had to buy food that would last all week,hence the rise of frozen food, and hence freezers to keep them in and microwaveovens to defrost them.Successful innovation also requires the creation of a relationship with the consumer,this again changes the way society is organised, consumers and producers are on thesame side as each other with common rather than opposing interests. This allowsproducers to fulfil (and target specific needs of the consumer).KaizenMeaning continuous improvement, big leaps are more satisfying than smallincremental changes. Yet it is notoriously slow and difficult to make money from a B S Patil 9
  10. 10. B S Patilgreat innovation. It is small innovation targeted directly at someone’s need thatproduces the quick and generous payback.Product Life CycleIntro stage, slow sales, new comers taking up the product, followed by growthwhereby more sales take place and profits are made in the market, then the maturitystage and decline as the product is phased out and a replacement – should come in.It is claimed products have a life time of profitability. The very market success thatmakes something profitable guarantees its being a target for competition and ofcourse the greater profitability the greater the competition.Some products come obsolete through advancing technology others throughdramatically decreased markets and other may find a new niche market – nylonstockings. Some products seem to have an indefinite space – e.g. mars bars. It is alsovery hard to know what phase of the PLC you are in unless PLC.The effects of personal influenceThe influence of personal factors on the process of innovation is the important fortheir effects on both the producer and the consumer.Product Champion Can be difficult to work with because they are unusual to thecorporate world. Tom Peters these characteristics as: Energy, Passion, idealism,pragmatism, impatience, doesn’t recognise barriers, love / hate relationship withcolleagues.The product champion may be the head of the company so would break rules, or benon traditional in their approach. B S Patil 10
  11. 11. B S PatilOpinion Leaders As consumers they are not always innovators but are more open tonew ideas. They range from 10% to 25% of the population. They tend to be moreout-going and knowledgeable about the product in question and are very importantfor word of mouth communication about the product. Advertisers take advantage ofthis and use celebrities to promote products.Diffusion of New Products and Innovations“The process by which innovation is communicated through channels over time amongthe members of social systems”It is therefore a macro or group process as companies with micro or individual processof adoption of new products and innovations.Three main innovations have been identifiedContinuous modification to existing products, new models and flavours to existingproducts, new models and flavours.Dynamically Continuous Requires more change in consumer behaviour. Can be themodification of an existing product or the creation of a new foods, music formats etc.Discontinuous Require a new form of consumer behaviour the rarest but with thegreatest social impact e.g. facebookFive product characteristics which determine consumer responses:Relative advantage To what extent does the improvement represent an improvementto existing products, this improvement is in the perception of the consumer.Compatibility How well the issue deals with the consumers existing values, attitudes,intent and behaviour e.g. new Bacon products in the Middle East isn’t a winner but nonbooze beverages maybe.Complexity The perceived difficulty in using a productTrail ability Is it possible to try out or sample on a limited basis. Some products canbe tried others can’t.Observability How easily the benefits of the product can be observed orcommunication to the consumer.The Adoption of New Products and InnovationsDifferent generations grow up with different innovations B S Patil 11
  12. 12. B S PatilSome innovations like the telephone, car, and radio have become taking for granted byseveral generations that grew up with them.Some innovations are user friendly, so even a generation that did not grow up withthem will adopt them rapidly.Some innovations may achieve an appreciable penetration of the market because of theperceived usefulness while only being friendly for a tradition of buyer while only beingfriendly for a traditional buyer usually the youngest VCR/ home pc.No innovation will be adopted by everyone.Typical adoption of new products B S Patil 12
  13. 13. B S PatilSummaryThousands of new products are marketed every year most of them fail. This isbecause of declining birth rates in the developed world, shortening lead times on theprofitability of new products and intensified global competition, innovation is nowregarded as a crucial function of all organisations. Levitt, total product concept is auseful model for marketers in thinking about the benefits of the product they areintroducing.Successful innovations seem to imply some form for reacting to social change in thelife of the consumer or in the relationship between the consumer and producer orproducts.New products go through a five stage life cycle from its introduction to its inevitabledecline, by the later stages replacement products should rationally be in the process ofdevelopment – this doesn’t always occur.Personal influence is often extended on the introduction of successful products both inthe form of product champions within the producers and opinion leaders amongconsumers.Diffusion of new products may be accomplished by three forms of innovation:Continuous, dynamically continuous and discontinuous. The adoption of new productsis never totally immediate, but often longer this produces anticipate being profitable.Large profit can still be made from small number of users.PerceptionIntroduction: Can we Trust our sensesThere is no such thing as objective reality e.g. glass half full / half empty. We eachperceive the world differently and we have to construct our own reality out of it.The first point we have with our physical environment is through our senses. Ourbrains processes information with the sensory messages it receives. Consumers arebombarded with vast amounts of information.Using our senses B S Patil 13
  14. 14. B S PatilInformation about the environment is conveyed to the brain from eyes, eats and otherorgans. Within the five sets of senses (Vision, Hearing, Touch, Taste, Smell) there arethen sub sense’s e.g. taste 4 different types. Also bodily movement and balance.It is the range and co-ordination of the human senses together with the sensitivity,that provide us with a unique quality and quantity of information about theenvironment. Vision – we tend to take our vision for granted. Package designers are aware that people loose their vision by their 40’s so make suitable package so that it is noticed. Hearing – “in store background music” when slow music was played people would walk slowly and sales increased by 38%. In fast food restaurants – music is faster so people get out quicker so seating can be utilised.Hidden Power of SmellThe sense of smell and taste, which we normally think of as being quite different areactually very closely related. If we didn’t have a sense of smell food would taste verydifferently.The tip of the tongue has taste buds which are sensitive to salt and sweet, the sidesare more sensitive to sour and the back to bitter.Manufacturers of food, use salt and sugar to provide sensations to the tongue (e.g. fastfood).More subtle food like Indian etc rely on more spices etc.Perfumes are of course lead by smell. Like most things perfumes are gender based,with women’s products being heavily floral and men’s products tending to be more,woody and tobacco and leather and other more masculine associated smells.Women are more sensitive to scent they tend to buy men’s products for them.Scent can not be seen, so sometimes product attributes are put to another factor otherthan smell, even though the smell is the driving force behind purchases.Multi – Sensual MarketingWe are used to associating consumer environment with specific senses, like asupermarket vision or a perfume counter with smell. However, clever marketing willmake use of a wide as range of sensory stimulation as possible. B S Patil 14
  15. 15. B S Patile.g. a book shop would have music, well laid out shelf space, soft carpeting and acoffee shop with pleasant appetising smells….Common properties of SensesThresholds of awarenessBefore we can become aware of any stimulation from the environment, a stimulus hasto be strong enough for our sense receptors to pick it up. Below a certain level ofintensity, we will not pick it up.This threshold is known as absolute threshold because it marks the differencebetween sensing and not sensing. Different people have different thresholds. A person’s ability to sense a certain stimulus may also vary depending on his or herpsychological or physiological condition at the time; e.g. drunk / sober, excited ordepressed.Manufactures want their new products or redesigned existing products to beimmediately noticeable in the consumer’s environment. Research may therefore bedone to determine where the consumer’s absolute threshold might be in thisenvironment in terms of shape, size, colour and so on.There is a sensory threshold that operates between two stimuli. The minimum amountof difference that you can detect is call the just noticeable difference (jnd). Once youhave detected a jnd between one stimulus and another you have crossed the differencebetween them.A one pound increase in the cost of a house is not a jnd, whereas a one pound increaseis a jnd.The manipulation of the consumer’s difference threshold is also a commonly usedtechnique of marketing. A new product that claims to last longer the opposition (must be noticeably so) Sometimes products (candy bar) decrease in size to keep there price the same. B S Patil 15
  16. 16. B S Patil The other relevant variable of quality is also subject to the same manipulation through the jnd, maybe more sensitive than either price or quantity, except at the cheap end of the market. Knowing where to pitch a sales discount for maximum effect is another marketing use of jnd that cuts across all retails sectors.Sensory AdaptationPeople in fish markets get used to the smell. If the stimulus is constant and familiarthe sense organs become insensitive to it and stop sending information about it toyour brain.There is a limit to sensory adaptation of course – if your watch strap is so tight it causediscomfort, you will not be able to adapt to it, you will change your environment byloosening the strap. If your tooth paste changes changed ingredients you couldchange it if you wanted.We also adapt to advertising both generally and specifically. That is why advertisers goto such lengths to be noticed among all the other adverts. This is why advertisingcompanies change so frequently.Perception: Processing Sensory InformationThe sense organ provide our brains with steady flows of information about ourenvironment and the brains’ task is then to take this raw material and use it to help usmake sense of the environment through the process of perception. The brain does itso smoothly, we are not aware it is happening.The raw material provided by our sensory apparatus is thus a very importantcomponent of the perception, but it is not the only one. We see, hear and feel thingsthat are quite unlearned if we relied upon these we’d be helpless. We learn to interpretand order these sensations in such a way that the environment becomes secure andpredictable.Focusing and AttentionOur consumer environment is only part of our total psychological environment. Even so,it has been calculated that most of us are bombarded with many hundreds ofadvertisements, every day. If it appears as few of the stimuli that impinge on us atany given time of any immediate importance, we filter out the ones which areimportant, by paying attention to them and we ignore the rest.We focus on whatever stimuli are most important in the environment at any one time.E.g. ignoring the hum of the air conditioner but focus when it stops. B S Patil 16
  17. 17. B S PatilBy attending to certain sensory stimuli and not to others we give them access to oursensory memory – the first stage of memory process – and they can then move fromthere to short term and long term memory.Underlying this series of psychological process is corresponding physiological process.Thus, when one channel of communication between sense organ and the brain isoccupied and has our full attention, the other physiological pathway to the brain andapparently blocked so that we do not become confused and overwhelmed by the othersensory messages. We follow the same process of focusing for instance when we goshopping.Selective Perception and DistortionIn order to make sense of the sensations our perceptions have to be selective. How, tomake a selection? How to perceive something and to give it our attention?But, attention can continually shift. What determines which stimuli will capture ourattention? Psychologists refer to external and internal factor in trying to understandattention getting and selective perception.External FactorsE.g. the air conditioner we only notice when it changed, it captured our sense. It is thestimulus provided by change in the environment that is most important. The changecan take many forms, contrast between sound and silence, is one of them a tall personin the street rather than on the basketball street.Movement in the environment is another important kind of change. People areresponsive to visual movement, quite automatically.Sheer repetition of a stimulus is also an effective way of getting our attention, aparticularly important phenomena in advertising. In what psychologist call a moreexposure effect it has been found, that repetition gains our attention, it encourages usto have a slight more positive attitude to stimulus in question.It follows from this that the more familiar we are with a products brand name, otherthings being equal, the more highly we will regard it. And, buy it. Although this isn’t alaw it does appear the most highly advertised products sell best.Size can also be an important external factor. This is why newspapers and magazinesgrade the importance of their headline by size of the type used, the more importantthe message.Intensity of a stimulus is also used to catch our attention. Bright colours, loud soundsare routinely used at public events, whether commercial or whatever. Commercialsflood us with sounds and colour. B S Patil 17
  18. 18. B S PatilInternal FactorsDifferent people react to the same sensations in different ways. People have differentinterest and of course different sexes or sexual orientation and will have differingreactions. People’s emotional and physical states will change and if this does nothappen to feel the same way at the same time, then they may well have differentreactions.The most important factor in perception is what people expect to see in each situation.People distort their perceptions to fit what they expect to see – perceptual distortions.Organising Perceptual cuesThe brain is very ingenious and creative in the way it organises the smallest sensoryclues from the environment to present us with meaningful pictures that we can operatewith. Sometimes as is the case with the perceptual distortions that picture does notconfirm with objective reality.Illusions - Internal factors can lead us to perceive things differently from the way theyreally are, but so can external factors. Each person brings a different unique group ofinternal factors to a perceptual situation; the external factors for everyone else are thesame.Figure and ground – The most basic of the illusion argument is how we perceivethings against the background; e.g. we need a background before we can pick out anobject in the environment. (E.g. the photo two faces/vase)Contours – In advertising this is important e.g. the brand name shouldn’t be a part ofthe forgettable background. Sometimes the music for an advert is remembered notthe background – Sometimes people can’t tell what is being advertised or by who.Grouping – People tend to pair things into patterns the wearing of uniforms is acommon form of grouping the similar and identifying the dissimilar as applied topeople. People react to a uniform rather than the person – same with “city folk” and soon.Closure – Despite the fact that things are incomplete e.g. a word or pictures, peoplewill close them e.g. a picture with holes.The Zeigornik effect people who worked on a variety of tasks remember the ones thatthey didn’t complete... rather than the ones they did.Gestalt psychology – What we perceive is more than the sum of the sensory stimulithat impinge on us from the environment. We perceive “gestalt” for or configuration,each gestalt has more meaning to the perceivers than just its sensory properties of B S Patil 18
  19. 19. B S Patilsize, colour, or weight – something may have meaning far beyond its physicalproperties. We search for patterns to make sense of the parts.Perceptual Constancy - While the sensations we receive from the environment areever changing, our perceptions of things remain constant. E.g. you see a cup in frontof you as an elliptical object, but you know it is round.How so? What we see is not always what we perceive, not just in visual illusions but inour everyday perceptions – we have to learn the meaning of what we see. E.g. blacksnow at night is really white.Depths and Distance – Helps us translate two dimensional information into threedimensions.Movement – Some of the movement we perceive, like a bird fly past the window, canbe explained as visual stimuli moving across our visual field and stimulating differentparts for the eye.Much of the movement we see is illusionary, a film consists of a series of still photos –its done so fast we perceive movement on the screen.Phi Phenomenon moving neon or other light quickly looks like movement – which getsour attention as we “notice” movement.Subliminal PerceptionVicary put subliminal messages into films, but this was below people’s absolutethreshold so they made little effect. He increased the frequency and sales were said toincrease. This method was attempted to be studied further but to no avail.Humans are capable of subliminal perception; we can perceive small stimuli that wecan not see or hear we may notice them but not register awareness.Products Images, Self-Image and Consumer BehaviourPeople have an image of themselves including a view of themselves as a consumer – webuy appropriately to fit this image.Perceived Risk As consumers we make a steady stream of buying decisions – theoutcome may be quiet uncertain. If we are consciously aware of this uncertainty we areperceiving risk. 1. Performance 2. Financial B S Patil 19
  20. 20. B S Patil 3. Physical 4. Time 5. Social 6. PsychologicalThere are several types of situation that will influence our feelings of uncertainty aboutrisky outcomes. Uncertainty about purchase goals is the car for communicating orthe occasional trip. Uncertainty about best alternative choice – what is the best for acertain look and uncertainty about making or not making a purchase, will theconsequences be satisfactory?Coping with RiskInformation gatheringRelying on brand loyaltySome official seal of approvalThe image of major or brandImage of the storeSummaryPerception involves the construction of reality by the brain with the information itreceives from senses. All senses, but especially the dominant modes of vision, andhearing are used by marketers and advertisers in selling products. All senses havecommon properties, notably threshold of awareness between sensing and not sensinga given stimulus (absolute threshold) and distinguishing between two different stimuli(differential threshold) and adaptation to a given level of sensory stimulation.The processing of sensory information, which is the basis for perception, normallyworks so efficiently that we are unaware of it. At the same time there are situations,involving both internal or personal factors and external environmental factors, in whichthe brain is subject to illusions and perceptual distortion. The existence and possibleeffects of the subliminal has been a matter of debate in consumer behaviour. Theperception of product that consumers have is an important reality for markets to dealwith. It is bound up with consumers self image. Finally a perception of risk in makinga purchase may apply to a given consumer. Marketers need to be aware of thispossibility so they can help the potential purchaser minimise this perceived risk. B S Patil 20
  21. 21. B S PatilPersonalityHow does personality affect what we buy?What is meant by personality?The term personality is commonly used in both psychologically and everyday speech.Psychologist interested in this subject want to know what makes someone a uniqueperson. What are the characteristics, way in which he behaves? What is the overallpattern of how he relates to other people and how they react to him?In everyday speech we talk about someone being tough, aggressive or being nice etc.These patterns are categories of behaviour, as defined by society, that we havelearned to recognise from our previous experience with people. Where the differencelies is other people do not try to assess the uniqueness of an individual at the sametime, they place them in categories that emphasise his sameness.Both psychologist and layman use the term personality to make sense of an individual’s behaviour. It is only an individual’s behaviour after all that we have to go on. All wecan do is observe that behaviour and infer what inner process motivated them to do it.This is just as true for psychologist as any one else. The psychologist makes histheory or personality explicit while that of the layman usually remains implicit and notconsciously thought about.Formal Theories of PersonalityThere are many formal theories of personality.Psychology defines the term personality:“The sum total of all the factors that make an individual a human being both individualand human; thinking, feeling and behaving … and the particular characteristic patternof these elements that makes every human being unique.”No theory can fully explain personality – humans are too complex B S Patil 21
  22. 22. B S PatilFreudian PsychoanalysisFreud thought of human personality as being in three parts. The Id, the ego and thesuperego.Id The id is composed of the powerful drives, raw impulses of sex and aggression thatdemand to be satisfied immediately. We are not usually aware of the id, it isunconscious (e.g. pleasure).Ego We are aware of our ego. It is the rational conscious, thinking part of ourpersonality. Our self image would be contained within the Freud’s image of the ego.The ego gets its working energy from the id, but when the id impulses are too strong itrepresses them and defend itself from knowing about them.Superego Like the id it is usually unconscious so that we are unaware of its workings.It is the part of our personality that we are unaware of its workings. It is the part ofour personality that deals with the right and wrong, with the morality, with the correctand proper way to behave, feel and think. The superego can be just as powerful asthe id in its demands on the ego that we behave the way we should –or take theconsequences of feeling guilty.These three aspects constantly interact with each other as we move through life.Frequently they are in conflict. The conflict appears in the ego as the conscious feelingwhose source we are unaware of because both id and the superego, with theirconflicting demands, remain unconscious.Freud referred to the personality as an iceberg B S Patil 22
  23. 23. B S PatilFreud believed that the first three years of a person’s life were absolutely crucial inshaping the adult personality. Repression is not simply a passive business of workingto know certain things. On the contrary it is an active process that takes up hugeamount of psychic energy to hold things down in the unconscious. Freud reinforcesthis as dynamic unconscious and psychological process involved in referred to aspsychodynamics.This means that the most powerful causes of human behaviour are unconscious andunavailable to external observation, was a powerful one that attracted an importantfollowing around the world.Freud’s development stagesOral stages To a young baby, the mouth is the most important source of gratificationand physical stimulation for the first couple of years. Infants first learn about theworld via their mouth, a lack of satisfaction in sufficient doses can produce a hostilesadistic kind of personality. On the other hand too much gratification can lead to toomuch improvement depending on others.Anal stages At the age of around two infants obtain control of their anus muscles.This control leads to gratification and dealing with the authority figures of parentscontrolling the training. Too much strictness during this period can lead to peoplebeing “anal” obsessively clean, controlled and ordered. Laxity leads to disorder andmessiness.Phallic At around 4 years of age, a child enters a phallic stage of development, wherethe gratification is associated from the sensuous pleasure from the genitals, includingmasturbation and fantasy.The Oedipus complex is represented after c. 5 years old it remains a crucial part ofpersonality for a life and plays a large part in determine someone’s attitudes, not onlytowards the opposite sex, but towards people in a position of authority.Application of Freudian theories to Consumer Behaviour and MarketingGiven the emphasis on the unconscious nature of many of the causes of our behaviour– this is important to marketing. The consumer is often unaware of needs that aproduct may be satisfying beyond the most immediate and obvious ones.e.g. expensive jeans – we just “need” to be clothed but people want what is perceivedas the best, or everyone of their peer group wears them. This might be to do withacting out fantasies or aimed at the pleasure principal of the id. B S Patil 23
  24. 24. B S PatilRichard Dichter Founder of the institute for motivational research. Dichter firstproposed that having a convertible car is the same as having a mistress. Modernadvertising places heavy emphasis on wish fulfilment, fantasy, aggression andaffiliation with others.A frequently used technique is that marketers adopt is the appeal of consumerlifestyle rather than the product itself.Markets use personality test when they come up with advertising campaigns. Threelisted below are based on Freudian theory.Personality Test – getting behind the public face that individuals present to the worldand obtain a picture what they are like – the inner life, that may not be aware of.MMPI (Minnesota Multi phase Personality Inventory)This has 559 questions where the testee answers true or false or cannot say. Is goodfor revealing patterns of behaviour and attitudes.TAT (Thematic Appreciation Test)Requires the subject to project onto some vaguely defined picture of what is on theirmind. of 20 black and white pictures. The pictures act like a screen on which thetrustee inner life is projected.Rorchach Ink Blot TestTen pictures of ink blots are used in colour and five in black and white. Subjects areasked what they see in the ink blot. What it reminds them off. There are no correctanswers.Neo Freudian PsychoanalysisSome of Freuds followers tended to de-emphasis the importance of id in favour ofmore ego related social factors. E.g Freud gives too much weight to biological driverswhich are tied up in the id and ignores the social interactions in the world we live in.Neo-Freudian’s believe interpersonal relationships especially those between parent andchild form the individual personality.Karen Horney produced a model of human behaviour that has been used in researchby consumer psychologist. The CAD Model. B S Patil 24
  25. 25. B S PatilThe compliant orientation includes people who move toward others. They aredependent on other people for love, affection and approval.The aggressive includes people who tend to move against others. They have a need forpower and the ability to manipulate others.The detached orientation includes people who move away from others. They stressthe need for independence and self reliance and avoid developing emotional bonds,which can create obligations.A CAD scale has been derived to measure the orientation of individuals as consumers.Compliant people prefer recognised brands; detached people are less interested inbeing consumers.Self TheoryCentred on the work of Carl Rogers, from the school of human psychology. Rogerstake an optimistic view of the existence and creativity and potential for growth withinevery human. However, this potential that people have often remains unfulfilled.Rogers argues due to the oppressive effects of family, school and all other socialinstitutions that shape the lives of individuals.By searching for their inner life can free themselves from the conformity of institutionsand the dogma of authority.Rogers stresses the importance of the conscious self image – in this theory he is notinterested in the workings of the unconscious. To the extent that a person ismaladjusted in his behaviour his self image is out of touch with reality.The origin of the concept of selfThe concept of self which Freud would consider to be a part of the ego is widely usedby personality theorists as the basic building block of personality. As such it isimportant that the origins of self is understood.A sense of who we are develops through the process of interacting with other people.From birth people respond to behaviour and in turn enact responses. Individualsreceive feedback on themselves. The basis of self image is physical – a body image andit will largely remain so throughout life.At first infants have difficulty knowing where they end and the external environmentbegins. They slowly develop control and understanding of their body, they then canstart exploring their environment.With broadening of child’s horizon that comes with development of language therealso appears a more detailed self image. Young children have no alternative but tobelieve that they are what their parents tell them they are. If the message from the B S Patil 25
  26. 26. B S Patilparents is that they are unlovable then that is the judgement they will make ofthemselves. We should not then be surprised to find that they then start to behave inan unlovable fashion. By the end of adolescence the outlines of our self concept havebeen set and crucial question of our self image whether or not we like ourselves andhave low or high self esteem has been answered.In one sense, though our self concept is a never completely formed or finalised and ourself esteem can be raised or lowered to some extent by social factors. E.g. like beingtreated as popular or attractive, you will feel it and then act as such.Marketing and the concept of selfThe concept of self has long been on interest to marketers because of its subjectiveelement.Actual Self Image– How we actually see ourselvesIdeal Self Image – How we would like to see ourselvesSocial Self Image – How we think others see usIdeal social self image – How we would like others to see us.Advertisers try to appeal to the different self images for different products. It isespecially important when people are trying to change an actually physical self imageinto an ideal one.Trait TheoryRaymond Cattell stated that we all have different traits (characteristics) that are sharedbut we all differ on the strengths of various traits. Cattell came up with 16 factors onwhich he based personality profiles. 16 pf it is widely used in job selection andvocational guidance. Catell suggests that there are three important sources ofpersonality data: Life data, self report, questionnaire data and objective data frompersonality tests.Brand personalityA more modest and attainable use of personality factors in marketing and inunderstanding consumer behaviour, lies in the development of a brand personality. Away of changing the image of a brand by giving it personal associations, as though itwere an individual; the brand would be described as, feminine, masculine, rugged etc.An important part of brand personality is colour. Some colours are associated withcertain characteristics e.g. white in a Western Nation is associated with purity andcleanliness – gold means wealth and royalty.Summary B S Patil 26
  27. 27. B S PatilPersonality factors are of great importance to consumer behaviour. Professionalpsychologist and laymen use the term personality to make sense of someone’scharacteristics behaviour. Of the most influential is psychoanalysis – both Freudian andNon Freudian. Self theory and trait theory is also note worthy in increasing ourunderstanding of consumer behaviour. Brand personality is another off shoot.Learning , Memory and ThinkingHow do we learn A great deal of animal behaviour is programmed, or instinctive, butthe higher up the animal kingdom you go, the less important does the instinct become.Humans have virtually no instincts at all. What they have is the capacity to learn, thusgiving humans the advantage to adapt to situations.In the process of being socialised children must learn the approved ways of walking,talking, eating, excreting and thinking. They also learn to make sense of life in thefashion approved by a particular society; whom to like and whom to dislike, how todecipher the mass media, how to deal with advertising and how to make buyingdecisions. All consumer behaviour therefore is learned behaviour.What is learning? Learning is the relatively permanent process by which changes inbehaviour, knowledge or attitudes occur as a result of prior experiences.Relatively permanent An outcome that is not due to the effects of temporary situations,like drugs or alcohol or being tired any of which can affect the way people act for alimit period of time. The other key terms are behaviour and knowledge. This isreferring to two schools of study: Behaviourist and Cognitive. B S Patil 27
  28. 28. B S PatilThe behaviourist ApproachBehaviour is described as:Psychology as the behaviourist views it is a purely objective branch of a natural science.It’s theoretical goal is the prediction and control of behaviour.Watson did not believe in the existence of the unconscious mind. He did not believe inthe existence of the conscious mind either, or any other kind of mind. There wasnothing to study other than someone’s observable physical behaviour. “ What you seeis what you get “Pavlov and Classical conditioningIdentified that the working of a process was clearly psychological.Watson took Pavlov work and incorporated it into theory of Behaviour. Here was a clearand objective way of understanding why a given stimulus produced a given responsewithout the recourse to talk of mental processes of the mind.Moreover it should be possible, using the conditioning method to change someone’sbehaviour in a desired direction.Consumer Application of Classical ConditioningBehaviourist point out that quite a lot of human behaviour can also be explained bysimple conditioning. The basic link in classical conditioning between the conditionedstimulus and unconditioned stimulus is at the heart of a great deal of our consumersociety.The goal is associate a product (CS) with a particular image (US) that is thought to beattractive to the potential customer. E.g. insurance being the product and associating itwith beach... which is attractive to the consumer. B S Patil 28
  29. 29. B S PatilA laboratory study has shown how people can be conditioned by music in anadvertisement to choose one colour over another.Stimulus generalisation Dogs would salivate not only to the usual sound, but to otherstimulations buzz, bells etc. The animals were generalising from particular stimulusthey had been conditioned with to a wider range of stimuli that sounded like it. Brandextension is an example of this in marketing e.g. a positive response to one brandleads to a positive unconditional response to others.Stimulus discrimination is the opposite effect. Pavlov demonstrates that a dog can beconditioned not to generalise to any other stimulus. Animals could be trained todiscriminate its original conditional stimulus from any other conditional stimulus. Herewarded the animal with food if it salivated to one sound and did not reward it forresponding to any other sound e.g. brand loyalty etc.Skinner and Operant ConditioningWithout waiting for a push from the outside, an animal will often begin to explore itssurroundings to operate on its environment. This is Operant Behaviour (BF Skinner) itis also called instrumental conditioning taking the Pavlov works a step further e.g. arat is left to find something that rewards it (food) once discovered by accident the ratwants to get rewarded again, after several occasions. The rat associates the barpressing with the food, operant behaviour positively reinforces behaviour with theappearance of food. When food is withdrawn, the rat stopped finding the bar. This isnot the same as punishment, just dissuading.Skinner also demonstrates that the avoidance of pain is at least as important inreinforcing operant behaviour as the gaining of reward. Skinner set up an electricshock so by accident the rat got shocked. It quickly learned not to this is aversiveconditioning and its results from a schedule of negative reinforcement. This is not thesame as punishment. Punishment is only useful as a discouragement. B S Patil 29
  30. 30. B S PatilPositive reinforcement – press the bar and get a reward.Extinction reinforcement – remove the bar to stop behaviour.Negative reinforcement – press the bar to avoid pain.Punishment – giving pain after an undesirable action.Consumer Application of operant conditioningIt is important at all cost that the consumer is not punished (get a bad product) after apurchase. There is no cheaper form of positive reinforcement than saying thank you orfollowing up with a thank you note.The cognitive approachLearning is the relatively permanent process by which changes in behaviour knowledge,feeling or attitude occur as a result of prior experience”The problem is one cannot “see” someone’s knowledge, attitudes or feelings, all youcan do is see what they do and infer from their behaviour what they think or feel.Until one tells – or buys a product – you cannot tell what their opinion doesn’t exists.Cognitive learning is essentially the relationship between means and end.Insight learning Trail and error learning is a slow and laborious process. People, aswell as animals, learn by this means but humans learning is due to insight, where theunderstanding of a situation or the solution to a problem seems to occur quitesuddenly and without any careful step by step process of learning.The cognitive approach was founded by Wolfgang Kohler emphasising the importanceof knowledge and insight.The greatest advantage of an insight solution is that unlike trial and error learning, itcan be applied to new situations. No specific skill or set of movement is learned, butan understanding of a relationship of a means and an end is gained. There is a linkbetween the psychology of perception and perception of learning, the concept ofmeaning.Just as the way we process environmental stimuli is crucial to our perception, the waywe process information is crucial to our learning. There is a link between thepsychology of perception and psychology of learning; the concept of memory.Information Processing and the concept of memory B S Patil 30
  31. 31. B S PatilWhatever we learned would be of no use to us unless we had some way of storing it,ready to retrieve it when needed. This procedure is often referred to as informationprocessing. When we learn something the brain engages in various activities thatprobably result in some kind of physical traces. Then we store this information andexperience in our memory.Whatever can be retrieved is remembered and whatever can’t is forgettable.People can recognise more advertisements as well as recalling them. It is importantfor the marketer to decide whether to aim for recognition or recall in planning amarketing campaign. Recognition will be a much cheaper option.The process of committing something to memory seems to involve 3 distinct stages asoutlined below:The advertisers problem is not getting a product image into the memory system, butkeeping it there.Sense memory last less than 1 second e.g. glancing at a phone number, the secondstage lasts for slightly longer up to 30 seconds – long enough to decide if theinformation is worth keeping. As most information is not worth keeping, it is notencoded it is discarded – forgotten.Some information in the second stage is important so is transformed to the third stage.This is called long term memory and in order to get there the information has to beprocessed while being held in short term memory. New information is constantly B S Patil 31
  32. 32. B S Patilpassing from sensory memory into short term memory and as it does it passes out theinformation already there. Info that is earmarked for long term memory is rehearsed orrepeated to ensure it is kept. It is encoded and placed along side similar information.Information in long term memory is not static it is dynamic: In a constant state ofre-organised, conscious or unconscious.Why do we forget? It may be the stimulus we are given is not sufficient for us toretrieve the meaning or it may be that we do not want to remember.Making learning meaningfulThe below are almost all applied to advertising:Repetition The most obvious and most immediate technique for learning something issimply to repeat or rehearse – the information. This is how powerful is passed fromshort term to long term memory storage. Radio and TV commercials make use of this.This is by and large and effective method when there is little competition but maycancel each other out when there is a lot of completion.Visual “One picture is worth a thousand words” this seems to have validity inadvertising. This why symbols are used to represent brands making brand nameseasily learned if they come with visual representation.Self referencing The act of relating information to one’s own life, this is triggering keypoints in one’s self, playing one individuals self image. The trigger is pulled by usingthe word “you” and referring to previous consumer experiences.Mnemonics Breaking information down into groups and associating each group ofinformation to be a trigger. Like public speakers in Greece – orators e.g. phone numberareas, code extension etc.Meaningfulness We learn things by linking them to things that we already know. Weorganise our memories into packages and call them schemas, tapping into thoseschemas is the goal of every marketer.ModellingClaimed by both the behaviourist and cognitive camps. Referring to modelling orobservational learning, people observe the behaviour of others and use them asmodels for their own behaviour.Children learn from parents and older siblings and peers. They can learn the behaviourwithout experiencing it. Meaning this is a social, observation and vicarious way oflearning. B S Patil 32
  33. 33. B S PatilSummaryLearning is a key psychological process that has been intensively studied for manyyears. There are two main approaches to this research, representing two major schoolsof thought. Behaviourist and cognitive approaches.The behaviourist approach is based on the link between stimulus and response anddeals solely with behaviour rather than thoughts or feelings. Its key technique forinfluencing behavioural responses is that of conditioning. The two major forms areclassical (Pavlovan) and Operant.The cognitive approach deals the mental processors such as memory, informationprocessing and thinking in general and is concerned with insight as a form of learningrather than trial and error of the behaviourist approach.The search for meaning in what we learn is a crucial part of cognitive approach.Tapping into this search and directing it in a chosen direction is the ultimate objectiveof marketers and advertisers. Modelling – learning form other people is an importantaspect of everyday life from earliest childhood and why that is widely used to sell manyproducts.MotivationWhy do people buy what they buy? Asking why gets us to the heart of motivation.What is meant by motivation? B S Patil 33
  34. 34. B S PatilMotivation, why do people do things? Two broadly accepted ways to make sense ofpeople’s motivation.Theory X People are inherently lazy so they must be motivated by external incentives. They will pursue their own goals, which run the counter to those of the organisation, so they need extra to keep them in line. They are quite irrational and incapable of self discipline of self control. The rate individuals, who are rational, controlled and self motivated will therefore have to manage others.Theory Y People seek meaning and a sense of accomplishment and to exercise autonomy and be independent in their work. As they are basically controlled and self motivated they will find external controls and incentives demeaning. If they are only given the chance to do so they will come to regard the organisations goals as their own.These different beliefs will lead to a different ways of managing staffDefining MotivationIt is elusive to defineA general term for any part of the hypothetical psychological process which involvesthe experiencing of needs and drives and the behaviour that leads to the goal whichsatisfies them.Buying Behaviour = Ability + Opportunity + MotivationBB = F (A,O,M) B S Patil 34
  35. 35. B S PatilThe fulfilment of needsSeveral major theories of motivation, the best known being those that deal with thefulfilment of needs. Needs are often divided into primary biological or physiologicalneeds like food, drink and shelter secondary needs like love or power.Primary needs must be satisfied before secondary needs, simply because of theoverriding importance of survival: An artist starving will not produce much art.We need food and drink to survive, we can live without power.Maslow hierarchy of needs People strive fulfil their needs, first at most basic physiological level necessary forsurvival. When their needs are fulfilled they are no longer motivated by them butother needs will always take their place, which are motivating as people reach selfactualisation, they seek to express personality characteristics like independence andautonomy to strengthen and deepen personal relationships and to maintain a sense of B S Patil 35
  36. 36. B S Patilhumour and a balanced view of life.The more self actualised people become the more they want to become. This is amotivation with its own inner dynamic.Consumer applications of Maslow hierarchy of needsMaslow suggested that people were influenced by higher order needs even when alltheir lower order needs had not been entirely satisfied. It was an though on averageour physiological needs were satisfied 80% of the time and so on through the hierarchyto having our need self actualisation satisfied say 10% of the time.What this implies for marketers is that virtually everyone is in the market at some levelfor the whole range of need satisfaction and that people may quite consciously tradeoff some areas to spend more on others. So people may decide to spend money oncertain items that fulfil “housing” needs rather than focusing on education or mayspend little on housing to free up money for education to fulfil self actualisation needs.Marketers like Maslow as its easy to work with:Physiological - Housing, food, drink, clothing.Safety – Insurance, burglar alarms, fire alarms, car with bags.Self Esteem – High street brands.Social – greeting cards, facebook, group holidays, team sports.Self actualisation – Educational services, skills, experiences.It has been more recently suggested that Maslow framework is a useful way ofidentifying emotional triggers in consumers, so that marketers can go beyond specificproduct benefits and appeal to the physiological needs may be trying to satisfy e.g.physiological segmentation.Perception is also a key consideration to both consumers and marketers of a productsimage. Our image of a product is bound up with self image and what we considerapproach for ourselves.The motivational MixMultiple motives e.g. shopping, people don’t just go shopping to shop. They mayinclude: B S Patil 36
  37. 37. B S PatilShopping gets you out of the house – breaks up the routineForm of entertainment – window shopping is freeShopping allows social interactionMakes people feel important and needed as the household providerLarging it over shopping assistance makes people feel important/powerfulHunting – bargaining skillsApproach and avoidanceLewin (1930’s) suggested that motivational pressures can either be positive or negativeindirection ; that we may feel pressure to move psychologically towards a goal objector away from it avoidance. Conflict can arise in three types of situation where themotive strength are about equal.Approach – Approach A common approach for deciding between alternatives, both ofwhich are desirable. Two good holidays.Avoidance – Avoidance Conflict the opposite of the above. The consumer has todecide between two equally undesirable alternatives. By nature people are tempted toput of making a decision, because whatever happens will be unpleasant.Approach – Avoidance conflict The conflict between positive and negative, usually ofa single product. The usual being the price of a desirable items is just about affordablebut no more. So the positive aspect of owning sometimes is offset by the negative ofthe cost.The force of inertia Unless we are actively seeking certain products we will follow ourestablished buying habits which like any other habits will have been learned over aperiod of time become part of our life. Changing habits can be tough – so overcomingthe forces of inertia requires a great effort.InvolvementHerbert Krugman first suggested this concept in the 1960’s. The relationship that aconsumer has with a product, as it refers to the personal importance that a givenproduct in a particular individual has. What does it do for the needs and values that arebehavioural expressions of his self image?The greater the involvement of the individual with the product and its perceivedbenefits, the more motivated he is to buy it. It is therefore crucially important torealise that in following discussion of involvement, it is the way the individualconsumer makes sense of the product and the situation and so on which is key. B S Patil 37
  38. 38. B S PatilAntecedents of involvementThese are the factors that precede involvement and determine that degree of it.Person: This set of factors is concerned most definitely with the consumers self imageand the needs, drives, values interest, wishes and fantasises that can be translated intobuying behaviour. Some people have close relationships with their cars, notice and careabout cars in general than people who do not.Product: People react to the same product in different ways. Therefore it is theconsumer’s perception of the product interacting with the personal factors that affectthe level of involvement. As the level of involvement increases, the greater differentialthe consumer perceives between products. E.g. Whiskey tasting “perceiveddifferentiation” the less generic, the more specific a product is, the more scope theconsumer has to develop a relationship with it.Situation: Involvement can also be influenced by the situation a product is beingpurchased. E.g. buying a gift rather than for one’s own use. What also would factor inhere is how we want the recipient of that gift to perceive us.Properties of involvement: Refering to the feelings that consume experience and thebehaviour exhibited when their involvement is aroused. Consumers who are highlyinvolved will take a great time and effort in making a purchase decision. They will seekout information on different brands and models etc. They will pay attention toadvertising.They will process information thoroughly and critically and they will be swayed moreby the context of the argument than the style. Actively engaged.People with low involvement who are more passive recipients of information. TV is apassive medium which requires low level of involvement. Print advertising requirescloser attention, more effort is processing content and therefore higher involvement.Outcome of involvementThe outcome of involvement will depend on the two preceding factors. - The passive consumer who allow TV and other advertising to wash over them without registering. Brand names are not implemented – and consumers will remain uninvolved even after a repeated exposure. - A heavily advertised brand may be enough to get a low involvement consumers to buy a product and may enable them to develop a relationship with the brand – this wont stop them buying other products though. Specific needs each of the below needs is considered to be of a particular importance in our society. Achievement affiliation and power. B S Patil 38
  39. 39. B S PatilThe need for achievementHenry Murray noted the need for achievement as one of the twenty needs motivatingbehaviour. Murray developed the Thematic Appreciation Theory (TAT). DaveMcClelland used the TAT to concentrate on the need for achievement he labelled thisthe n arc.People on the n arc have a preference for particular situations where: - The degree or risk involved in is neither high nor low – moderate - Feedback on their performance is required - Individual responsibility is acknowledgedModerately risk task would provide a reasonable probability of success for people highon the n arch, whereas low risk situation would be unchallenging failure on the otherhand would hurt their self esteem.A sense of personal accomplishment is crucial to people with high n arch and thiswould place them in the self esteem of self actualisation categories in Maslowshierarchy.Need for affiliationThis would be placed lower than the need for achievement in Maslows hierarchy, in thecategory “social needs” this need is characterised by the importance to the individualof love and the acceptance and feeling of belonging to groups, like family, peers,sports teams and so on. Teenagers would be an obvious target – struggling toestablish an identity of their own. Coke and Pepsi appeal to this need.Need for PowerPeople who are trying to control as much of their lives as possible, so this wouldappear on the bottom – Power/Safety.Successful managers might be high on the need for power and low on the need foraffiliation.Unconscious Motivation: There are times when we literally do not know why we didsomething.Motivational Research: Restricted to the workings of the unconscious consumermotivation. B S Patil 39
  40. 40. B S PatilCreating needs: “Can needs be created?”There is no evidence that anyone can create needs. Marketers and advertisers can tryto stimulate an existing need or channel to a certain product or brand – results arequite unpredictable.Semiotics the meaning that signs and symbols have for people both consciously andunconsciously. We are not usually aware of it we live in a world of signs. Research hasfocused on small scale and concrete symbols partially animals like penguins, diet cokeetc.Because symbolism is by its very nature non verbal it makes psychologicalinterpretation – which is never easy. We can only make an educated guess it if anything– symbol means to an individual consumer. “Sometimes a cigar is really just a cigar”Freud.Dichter was asked to investigate the declings value of prune sales. People like them(taste) but they were put off by the symbol. Associated with old age – they areassociated with associated with health problems, low prestige and parental discipline.SummaryMotivation ramifies though out the study of consumer behaviour appearing indiscussions of leaving personality, market segmentation and attitudes. It is primarilyconcerned with links between cause and effect observed in behaviour. Maslow dealswith individual needs and fulfilment. Other needs such as power, achievement andaffiliation are of particular interest to researchers.MaslowPhysiological, safety, social, self esteem, self actualisationSpecificPower, affiliation, achievementThe degree of psychological involvement a consumer has with a given product isthought to be crucial to understanding has motivation towards actual buying it. B S Patil 40
  41. 41. B S PatilAs much of our motivation is unconscious the symbolic interpretation of consumersresponses to products has an important place in this field as does the more socialinterpretation of products as symbols represented by the study of symbols.Family InfluencesHow does our upbringing affect us as consumers?Margaret Thatcher: Our beliefs are fashioned in the family when we are growing upand our experience of it affects us for the rest of our lives.What happens in families seems to be of great interest to everyone, e.g. soap operasetc.When we try to isolate particular behaviour like buying and consuming specificproducts and asks what affects family relationship have one them.Family a group of two or more like people living together who may be related by blood,marriage or even adoption. Families may also be nuclear consisting of a husband,wife and children (McTypical). They may also be extended over time to includegrandparents, or psychological being cousins and more distant members.The family one is born into is known as the family of origin (or orientation). The familyone helps create by reproduction is the family of procreation.Because the family is also a social group indeed the prototypical social group in anysociety – there are two other defining terms that should be monitored. Primary Groupand reference group.Every family is a primary group because of the face to face interaction that takes placeon a regular basis. Families can also be reference groups up to a point as long asmembers refer to family values and ways of behaving as a guide to their decisions andactions.What constitutes a family has great importance to the marketer. That is apart from theeffects that our family of origin has on our individual consumer behaviour, the familyas a buying organisation exercises enormous economic influence. B S Patil 41
  42. 42. B S PatilThis is why markets have a vested interest in understanding and supporting theconcept of family. E.g. Christmas season – prime time for consumption.Changes in familyIn western societies the extend family is quiet rare. It is also rare for the man to be thesole bread winner, the rate of divorce has also increased.The extended family in other areas of the world are very important it also exists withinethic subcultures. In the west young people left the homes in search of higher livingstandards. Many more women are now in the world place too.HouseholdRefers to all the people whether related to each other or not when they occupy thesame unit of housing, where people live rather than whom, thus making it a moreinclusive term than family covering nearly all of the population. Soldiers, monks,prisons etc – those who reside in institution are not part of a household everyone elseis.There is of course overlap and those living alone are also considered a household.SocialisationThe process whereby an individual becomes a social being. Although a life longprocess it is considered important in childhood, when society is represented by a childparents, as well as the rest of their family.Socialisation is therefore the way in which a child becomes a functioning member ofsociety. Socialisation is a two way process. People influence their social behaviour andfrom birth onwards are influenced artificially to enable us to study each more closely,but in real life they are closely interwoven.ChildhoodSome newborns are more active than others. This means that people will react to themdifferently and have different expectations of future behaviour. The infant in turn willreact to their reaction and the process of socialisation and constructive of personalityhave begun. Children and parents can manipulate each others behaviour.The effects of institutionsWe all live our lives among groups of people. Some groups are more important to usthan others in our socialisation. B S Patil 42
  43. 43. B S PatilFamily – Most children live their lives with their family before they go to school. Freudand others argue that a child’s experience are crucial in determining his adultspersonality. Parents are all powerful, no matter how benign. They know all the answers– so their way of dealing with the world becomes the child’s way of dealing with theworld.As they grow up children, can then put their parents the wider social perspective.In a psychological sense children’s parents remain with them in some form for the restof their lives for they will have internalised what they have learned from the them. Onething is they would have learned what being a consumer means. So emotionallyimportant ones like food consumption – people may retain for the rest of their lives theeating habits and preferences they learned at the family dinner table or the family tvset!School - Children become part of the world and must deal with it alone. Childrenlearn how to behave in an extremely complex society and maintain and develop theirown individually. As children go through school, their peers will become moreimportant in influencing them than their parents.e.g. dressing, dealing with authority, trying to fit in yet remain individual.Nation State - Once a person has become an adult – socially, they are recognised assuch by the state. The age varies and it should be noted that a persons perceived ageis different from their real age.The nation state is the most important single fact about the way people are divided inthe planet. National government is the only source of legitimate power in a country.Controlling the police and Army. It has the ability to raise tax and pass law.Different nation states produce different types of social being people are taxed, vote,drive and fight under similar but different system of values. The values in turn arerelated in different educational systems and family patterns.The institutions of the family, school and nation state are all linked together, of courseand normally share that same values and reinforce the same kinds of behaviour.Consumer SocialisationParents do not give specific training in the training in this area, they act as role models.Co-shopping usually is a mother child thing and is a very useful way to spend timetogether in today’s busy world (tow birds with one stone) on such trips children learnabout budgeting, choosing between products, brands and quality. Co-shopping onceagain is a two way process. Teenagers may be more trends aware and assist theirparents in decision making. E.g. environment movements etc. Then adults can dosimilar things for their older parents. B S Patil 43
  44. 44. B S PatilFamily decision buyingWhen dealing with the buying decision of a family, the problem (of finding specificdecision causes) is more complex. There is usually more than one person making thedecisions or influencing the person who makes it.Family RolesThe instrumental role is one of providing material support and leadership and isusually by the father – Mr Mctypical.Whereas Mrs McTypical is expected to perform the expressive role of giving emotionalsupport and aesthetic expression.There are many specific roles to be player in the course of a family purchasing decision.The following are the most frequently used:Initiator – the person who 1st decides there’s a need or raises the idea to buysomething.Influencer – An opinion leader who provides information and persuades the familyabout what to buy.Decider – A family member with the authority to make the buying decision himself.Buyer – the person who makes the purchase.Use – the consumerGatekeeper – Letting crucial information through the gate or net. e.g. mentioning aconcert to a teenage or buying fat free dessert.The role the family members adopt may depend on which spouse is dominant andfor what product. 1. The husband / wife may be dominant. 2. The partners may be autonomic – an equal number of joint decision made by each 3. Syndicate – decision made jointlyResolving ConflictsAny group of two or more people are bound to have disagreements there are four mainstrategies that families will use: B S Patil 44
  45. 45. B S PatilCoercion Invariably used by the husband, by expertise, authority and threatsPersuasion reasoned argument, presented in a reasonable manner.Bargaining “give and take” making concessions/briberyManipulation Purely psychological strategy that is used by any family member, sulkingsilence, etc etc.Changing RolesFamilies go to great lengths to avoid open contact, especially with important decision.People may not be aware of their partners preferences until the process begins. So it isit therefore difficult to bring any of the above strategies into play, more a case ofmuddling through.With greater sexual equality decisions are becoming less husband and wife specific,with more discussions and negotiation taking place. Although attitudes change inbehaviour usually lags behind.Life cycle effectsA convenient and often used way of summarising family effects on consumerbehaviour is the family life cycle. This is an external view form a sociological viewpoint.Bachelor - unmarried under 35 low income bit few financial burdens to bear. Lots ofdisposable income. Buys gadgets, cars etc.Newly married – “honeymoon stage” relatively good financial health two full timeincome and no children. Costs, mount in terms of spending on setting up new homeetc. Appliances, kitchenware etc.Full nest - First children and marks the end of the honeymoon period. Major changesin consumer behaviour. Moms stop working, drop in income with expensive new arrival.Spending curtailed “junk food restaurants” instead of real ones – debt levels high.Full nest II - youngest at least 6. Mother may return to work, husband earning more.Food is a heavy expense childerns interested and education takes up income.Full nest III Progression of previous stage – kids now in their teens.Empty nest - Children leave home, parents still working at the peak of their incomes.Items more luxurious, in terms of travel, recreation and gifts. B S Patil 45
  46. 46. B S PatilChildren could possibly return homeEmpty nest II - Now retired – children left home maybe down size, likely to buymedical products.Solitary survivor – Spouse dies, still in the world of paid employment in same marketas retired couple.Retired Solitary survivor – As empty nest II – insecure and lonely.Non family householdSingle people are on the rise. They tend to be insecure and worried about how theypresent themselves to the public, could be pre-married, divorced etc..SummaryFamilies provide the emotional environment in which we are reared, however nurturingor dysfunctional that they maybe. Usually the family experience occurs within ahousehold of people sharing the same accommodation. The family is the first majorsocial institution to socialise its members, followed by school and the nation state.Socialisation is the process that is brought to bear on individuals with the aim ofbringing out the social nature of their personality and providing them with knowledgeof the appropriate behaviour expected in a given situation.Family buying is a complex and difficult process. Different members of the family havetaken particular roles in this process that seems to be changing. Conflict maybeinvolved and families have evolved ways of resolving. Following the family life cycle is auseful way of analysing effects of family life on consumer behaviour. B S Patil 46
  47. 47. B S PatilSocial and developmental influencesHow does our psychological development affect our consumer behaviour?Families look at the way humans are “socialised” as opposed to the individuals webecome. Part of the process of being in a family is learning how to be a consumer byco-shopping with parents and by acting as role models.Socialisation will be examined, individual development, both mental and emotional, inchildren and adolescents and how that development is affect by the various socialinfluences that children come into contract we as they grow up.Maturation process, the development of the economic mind and the psychology ofmoney.Socialisation and individual development B S Patil 47
  48. 48. B S PatilAll individuals develop psychologically as part of a growing up. Though in differentways, and at different times – they are all open to influences form their external socialenvironment as well as their family. This is not something that can be shielded against.It is important because it interacts with the individual process of development, andinevitably makes it more complex.MaturationPsychologically described as:“the process of growth and development which are common to all members of speciesand appear regardless of individual heredity or environment”It is through this type of process people are able to walk, talk and think regardless ofwho their parents are or where they live or how much money they have.Abilities due to maturation will therefore appear in the growing child, according to aninborn biological timetable. Parental encouragement will only be useful once thechilds’ brain is ready to fulfil the function, walk, talk etc. The child will be ready whenit’s ready.Stages of development There is a maturational process that every child has to gothrough in order to acquire adult mental abilities. As the brain grows and develops the B S Patil 48
  49. 49. B S Patilchild is able to think and reason with ever increasing complexity.Jean Piaget identified four different stages in the childs progress.“a development process taking place in a series of non arbitrary, sequential andprogressive steps, each of which subsumes each proceeding steps”In order to have adult thought processes every child will achieve the same sets ofmental abilities in the same order and at roughly the same age. Every new stage ofdevelopment will not only included all previous learning, but will also transform it, sothat the same world will be understood differently. This was Piagets contribution topsychology.Piaget identified four stages by the use of systematic experimentation he was able todemonstrate that children perceive things in a different way to adults.The process of development from child to adult is no ta gradual increase of knowledge,but rather a progressions.Sensory Motor stage (birth years to two years)Language and symbols only play a small part in the development.Concerned with discovering their own bodies and their growing power to act in theirenvironment.Object constancy – objects are removed from the childs field of vision, they no longercease to exist for them as they had before. Objects are separate in their existence –they can “hold the image”Preoperational stage (2-7)The acquisition of language and the use of symbols characterise this stage ofdevelopment.Word, names of things are magical, they believe the name is part of the object, itcouldn’t exist without a name. A child could become upset if someone called them a“bad name”.Child does not yet understand the principle of conversationConcrete operation stages (7-11) B S Patil 49
  50. 50. B S PatilChild can understand conversation and can classify people in more than one category(e.g. uncle Lee, can also be brother to Brendan now).Begin to grasp the physical properties of things, their quality, numbers, weight andvolume remain the same even if appears change. – e.g. water in a small glass, sameamount in a large glass.They are in a position to know what the world is really like even when it does not agreewith their perceptions of it. At this point they are capable of absolute thinking.Formal Operations stage (11+)The ability to form concepts and to think abstractly is the final achievement in children’s intellectual development and these appear some time after 11.Logical reason is an accomplished at this stage. Children are no longer dependent onphysical objects that can see and manipulate. They can now work things out in theirheads, by late teens, they are cognitively adults.Assimilation and AccommodationAs maturation unfolds children are trying to adapt to more and more complex worldpresenting them with new information all the time. There are two parts to this process.One is assimilation whereby information in the world is assimilated into their cognitivesystem.The other part comes into play when children’s thinking is not sufficiently complex tolet them makes sense of some information. They are forced to re-organise theircognitive system to include the new situation. This is accommodation.When a particular crucial accommodation is achieved they can move onto the nextstage of development.From egocentric to reciprocalDuring the earlier stages of development the world of children centres on themselves.They know how the world looks to them buy cannot visualise how it would look toother people. This view is egocentric (Piaget) as the child develops they acquire theability to decentre from themselves and put themselves in someone else’s place.Learning to play by fixed rules etc. B S Patil 50

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