The concept of marketing starts with customer needs and ends with consumer behavior by meeting the needs of the customers. • The marketers are specifically interested in understanding what a consumer looks at while choosing a specific brand. • CB tries to understand the consumer as a whole.

1. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: Fifth Semester
Name of the Subject:
Consumer behavior

2. • The concept of marketing starts with
customer needs and ends with consumer
behavior by meeting the needs of the
customers.
• The marketers are specifically interested in
understanding what a consumer looks at
while choosing a specific brand.
• CB tries to understand the consumer as a
whole.

3. • THE TERM CONSUMER CAN OF TWO TYPES
• INDIVIDUAL OR PERSONAL CONSUNMER
• ORGANIZATIONAL OR INDUSTRIAL
CONSUMER

4. INDIVIDUAL OR PERSONAL
CONSUNMER
• HE IS THE ONE WHO PURCHASES FOR
SELF OR HOUSEHOLD CONSUMPTION.
• The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.

5. CUSTOMER
• A CUSTOMER IS ONE WHO
PURCHASES A PRODUCT OR SERVICES
FOR SELF CONSUMPTION OR
OTHERWISE.
• CONSUMERS ARE ALSO PART OF
DEFINITION OF CUSTOMER.

6. ORGANIZATIONAL OR INDUSTRIAL
CONSUMER
• THEY ARE THE ONE WHO PURCHASE FOR THE
USE OF THE PRODUCT IN AN ORGANIZATION.

7. BEHAVIOR
• BEHAVIOR REFERS TO THE WAY OF ACTING OR FUNCTIONING
BY AN INDIVIDUALIN THE CONTEXT OF SURROUNDING
ENVIRONMENT.
• IT IS GENERALLY MEDIATED BY NEEDS, MOTIVES,
PERSONALITYPERCEPTION, LEARNING, INVOLVEMENT,
CULTURE , REFERENCE GROUPS, FAMILY AND SOCIAL CLASS.

8. Consumer Behaviour
The behaviour that consumers display in
searching for, purchasing, using,
evaluating, and disposing of products
and services that they expect will satisfy
their needs.

9. • IT IS THE STUDYOF HOW INDIVIDUALS MAKES
DECISIONS TO SPEND THEIR AVAILABLE
RESOURCES(TIME MONEY, EFFORT) ON
CONSUMPTION RELATED ITEMS.
• IT INCLUDES
• WHAT
• WHY
• WHEN
• HOW OFTEN
• THEY PURCHASE AND HOW THEY USE THE
PURCHASED PRODUCT.

10. Development of the Marketing
Concept
Production
Concept
Selling Concept
Product Concept
Marketing
Concept

11. The Production Concept
• Assumes that consumers are
interested primarily in product
availability at low prices
• Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion

12. The Product Concept
• Assumes that consumers will buy the product that offers them
the highest quality, the best performance, and the most
features
• Marketing objectives:
– Quality improvement
– Addition of features
• Tendency toward Marketing Myopia

13. The Selling Concept
• Assumes that consumers are unlikely to
buy a product unless they are
aggressively persuaded to do so
• Marketing objectives:
– Sell, sell, sell
• Lack of concern for customer needs and
satisfaction

14. The Marketing Concept
• Assumes that to be successful, a
company must determine the needs and
wants of specific target markets and
deliver the desired satisfactions better
than the competition
• Marketing objectives:
– Profits through customer satisfaction

15. Business Leaders Who Understood
Consumer Behaviour
• Alfred Sloan, General Motors
• Colonel Sanders, KFC
• Ray Kroc, McDonald’s

16. Implementing the Marketing Concept
• Consumer Research
• Segmentation
• Targeting
• Positioning

17. Segmentation, Targeting, and Positioning
• Segmentation: process of dividing the
market into subsets of consumers with
common needs or characteristics
• Targeting: selecting one ore more of the
segments to pursue
• Positioning: developing a distinct image
for the product in the mind of the
consumer

18. Successful Positioning
• Communicating the benefits of the product,
rather than its features
• Communicating a Unique Selling Proposition
for the product

19. The Marketing Mix
• Product
• Price
• Place
• Promotion

20. The Societal Marketing Concept
• All companies prosper when society
prospers.
• Companies, as well as individuals,
would be better off if social
responsibility was an integral
component of every marketing decision.
• Requires all marketers adhere to
principles of social responsibility.

21. Digital Revolution in the Marketplace
• Allows customization of products,
services, and promotional messages
like never before
• Enhances relationships with customers
more effectively and efficiently
• Has increased the power of customers
and given them access to more
information

22. Digital Revolution in the Marketplace -
Continued
• The exchange between consumers and
marketers has become more interactive
• May affect the way marketing is done

23. Changes brought on by the digital
revolution
• Changes in segmentation strategies
• Re-evaluation of promotional budgets
– reduced impact of television?
– More internet-based promotion?
• Integrated marketing becomes critical
– Using off-line promotions to drive
consumers to company’s website (and
vice-a-versa)
» Continued

24. Changes brought on by the digital revolution
- continued
• Revamping distribution systems
– Direct distribution becomes more of an option
• Pricing methods may need to be re-
evaluated
– Comparison shopping made easier
• Consumer research methods may change
– How do you measure web-based promotions?

25. Why study consumer behaviour?
• Understanding consumer behaviour will
help you become better marketers as it is
the foundation for
 Segmenting markets
 Positioning products
 Developing an appropriate marketing
 continued

26. Why study consumer behaviour?
• KNOWLEDGE OF CONSUMER BEHAVIOR IS NECESSARY TO
DETERMINE THE MARKETING MIX THAT WOULD SATISFY THE
CONSUMERS BETTER.
• IT CAN SERVE AS A GUIDE TO PLANNING AND IMPLEMENTING
MARKETING STRATEGIES TO ACCOMPLISH THE GOALS OF THE
FIRM.
• TO FACE AND SUCCED IN CUT THROAT COMPETTION.

27. Why study consumer behaviour?
• Knowledge of consumer behaviour is
essential for non-profit organizations
– Non profits have different customers to
please
– Donors, users, volunteers, general public,
government
» continued

28. Why study consumer behaviour?
• Public service initiatives have to be
based on an understanding of
consumer behaviour
– Canada’s largest advertiser is the federal
government
– Most government initiatives (e.g.,
antismoking campaigns) need a
knowledge of consumer behaviour to
succeed
» continued

29. Why study consumer behaviour?
• Better understanding of our own consumption
behaviour

31. Approaches to Consumer Behavior
Research

32. Approaches to Consumer Behavior
Research cont.
• Major approaches to studying consumer behavior
– Interpretive
• Based on theories and methods from cultural anthropology
• Objective is to understand consumption and its meanings
• Methods of study involve
– long interviews
– focus groups

33. Approaches to Consumer Behavior
Research cont.
– Traditional
• Based on theories and methods from cognitive, social,
and behavioral psychology, and sociology
• Objective is to explain consumer decision making and
behavior
• Methods of study involve
– experiments
– surveys

34. Approaches to Consumer Behavior
Research cont.
– Marketing science
• Based on theories and methods from economics and
statistics
• Objective is to predict consumer choice and behavior
• Methods of study involve
– math-modeling
– simulation

35. CONSUMER BUYING PROCESS
• NEED RECOGNITION
• INFORMATION SEARCH
• EVALUATION OF ALTERNATIVE
• PURCHASE DECISIONS
• PURCHASE
• POST-PURCHASE EVALUATION

36. MEANING OF ORGANIZATIONAL BUYING
• Organizational behavior refers to the to
the buying behavior of organizations that buy
products for business use, resell or to make
other products.

37. ORGANIZATIONAL BUYING
PROCESS
Problem recognition
General need decision
Product specialization
Supplier search
Proposal solicitation
Supplier selection
Order routine specification
Performance review

38. • Problem recognition – recognition of need by someone in the company that could
be met by purchasing a particular product or service. New ideas may come through
trade shows, advertisement, sales person.
• General need decision- the features & quantity of the needed item are described by
the originating department in consultation with technical service people.
• Product specialization – technical specifications of the required product are
developed .
• Supplier search – search for the best vendors using database or directories.
• Proposal solicitation - inviting bids from vendors .vendor’s salesmen may give
presentation.
• Supplier selection – analysis of proposals.
• Order routine specification- preparation of purchase order /supplier contract
which includes technical specification , quantity to be supplied, delivery schedules,
price, guarantees.
• Performance review- the buyer reviews the performance of the supplier. The
feedback normally comes from the user department . Based on the review , the
buyer may decide to continue the contract or cancel further supply .

39. TYPES OF BUYING SITUATIONS
• Straight rebuy- purchase department reorders
on a routine basis, such as office stationery.
• Modified rebuy- buyer wants to modify
product specifications, prices, other terms of
suppliers , such as new electronic components.
• New task- buying for first time. This is
marketer’s greatest opportunity &challenge.

41. FACTORS INFLUENCING
ORGANIZATIONAL BUYERS
• ENVIRONMENT FACTORS- factors in current & expected
economic environment, such as primary demand, economic,
outlook, cost of money.
• ORGANIZATIONAL FACTORS-specific
objectives,policies,procedures, organizational structure &
system.
• INTERPERSONAL FACTORS- includes several
participants with different status, authority, empathy &
persuasiveness .
• INDIVIDUAL FACTORS – personal motives, perceptions
& preferences. These factors are further affected by
personal characteristics like age,income,education,styles
&attitudes.

42. Difference between consumer and
organisational buying
• Setting for Buying
• Technical/Commercial Knowledge
• Contact with Buyers/Distribution Channels
• Number of Decision-Makers
• Reciprocal Demand

43. Important models of consumer
behaviour:• The Economic Model
• Learning Model
• Psychological Model
• The Sociological Model
• The Howard Sheth Model of buying behaviour
• The Nicosia Model
• The Engle-Kollat-Blackwell Model
• Engle, Blackwell and Miniard (EBM) Model
• Webstar and Wind Model of organizational buying behaviour
• The Sheth Model of Industrial buying

44. Traditional Models
• The Economic Model
• Learning Model
• Psychological Model
• The Sociological Model
Contemporary Models
• The Howard Sheth Model of buying
behaviour
• The Nicosia Model
• The Engle-Kollat-Blackwell Model
• Engle, Blackwell and Miniard (EBM)
Model
• Webstar and Wind Model of
organizational buying behaviour
• The Sheth Model of Industrial buying

45. Economic Model:
This model assumes that with limited purchasing power and a set of needs
and tastes, a consumer will allocate his/ her expenditure over different
products at a given prices so as to maximize utility.
Bases for Economic Model:
– Price Effect
– Substitution Effect
– Income Effect
Criticism:
• Fails to explain how does the consumer actually behave.
• Incompleteness in the Model.
• Lack of broader perspective.

46. Learning Model:
This model help marketers to promote association of products
with strong drivers and cues, which would lead to positive
reinforcement from the consumers.
In marketing context, ‘learning’ will help marketers to
understand how consumer learn to respond in new marketing
situations, or how they have learned and respond in the past in
similar situations.
As Consumers also learn to discriminate and this information
will be useful in working out different marketing strategies.

47. Psychological Model:
This model based on the work of psychologists who were concerned with
personality. The view was human needs and motives operates on buying.
This theory was developed by Sigmund Frued. Acc. To him human behaviour
is the outcome of
– Id
– Super Ego
– Ego
This model is concerned with personality and says that human behaviour to
a great extent is directed by a complex set of deep seated motives.
Helps the marketer to know how buyers influenced by symbolic factors in
buying a product.

48. The Sociological Model:
As per this model, an individual buyer is a part of the
institution called society, gets influenced by it and in turn, also
influences it in its path of development.
The interactions with all the set of society leave some
impressions on him and may play a role in influencing his
buying behaviour.
The marketers, through a process of market segmentation can
work out on the common behaviour patterns of a specific class
and group of buyers and try to influence their buying pattern.

49. The Howard Sheth Model of buying
behaviourIt attempts to throw light on the rational brand behaviour shown by buyers
when faced with situations involving incomplete information and limited
abilities.
The model refers to three levels of decision making:
• Extensive problem solving
• Limited problem solving
• Routinized response behaviour
The model has borrowed the learning theory concepts to explain brand choice
behaviour when learning takes places as the buyer moves from extensive to
routinized problem solving behaviour.

50. Four components involved in the
model:
• Input variables
• Output variables
• Hypothetic constructs
• Exogenous variables
The model makes significant contribution to
understand consumer behaviour by identifying
the variables which influence consumers.

51. Input Variables: these variables acts as stimuli in the
environment.
Stimuli can be of Significative, Symbolic & Social
Significative stimuli are those actual elements of brands
which the buyer confronts, where as Symbolic stimuli are
those which are used by marketers to represent their
products in a symbolic form. Social stimuli are generated by
the social environment such as family, friends, groups etc.

52. Output variables:
These are which buyer’s observable responses to stimulus inputs. They
appear in the sequence as below:
• Attention: Based on the importance of the buyer’s information intake.
• Comprehension: the store of information the buyer has about the brand.
• Attitude: the buyer’s evaluation of the particular brand's potential to
satisfy his or her motives.
• Intention: the brand which the buyer intends to buy.
• Purchase behaviour: the act of actually purchasing, which reflects the
buyer’s predisposition to buy as modified by any of the inhibitors.

53. Hypothetical Constructs:
The model proposes a number of intervening variables which have been
categorised into two major groups: perceptual and learning constructs.
Perceptual Constructs include:
• Sensitivity to information: the degree to which the buyer regulates the
stimulus information flow.
• Perceptual bias: refers to distorting or altering information
• Search for information: it involves actively seeking information on the brands
or their characteristics.

54. The buyer’s learning constructs can be defined as:
• Motives are general or specific goals impelling action.
• Brand potential of the evoked set refer to the buyer’s perception on
the ability of brands in his or her evoked set to satisfy his or her
goals.
• Decision mediators are based on the motives. The buyer will have
certain mental rules for matching and ranking the purchase
alternatives.
• Predisposition refers to a preference towards brand in the evoked
set which expresses an attitude towards them.
• Inhibitors refers to environmental forces like price and time
pressure which may inhibit or put restrain on the purchase of a
preferred brand.
• Satisfaction the extent to which, post actual purchase will measure
up to the buyer’s expectation of it.

55. • Exogenous variables:
These are list of a number of external variables
(external to the buyer) which can significantly influence
buyer decisions.

56. The Howard Sheth Model of buying
behaviour

57. Limitations of the model:
• There is a absence of sharp distinctions between exogenous
variables and other variables.
• Some of the variables, which are not well defined, and are
difficult to measure too.
• The model is quite complex and not very easy to comprehend.

58. The Nicosia Model
This model attempts to explain buying behaviour by establishing a link between the
organisation and its prospective customer. It analyse human being as a system with
stimuli as the input to the system and the human behaviour as an output of the
system.
The model suggests that message from the first influences the predisposition of the
consumer towards the product or services. Based on the situation, the consumer
will have a certain attitude towards the product. This may result in a search for the
product or an evaluation of the product attributes by the consumer.
If the customer satisfies with above it may result in a positive response, with a
decision to buy the product otherwise the reverse may occur.

59. The Nicosia Model explains in 4 basic areas:
Field 1:- the consumer attribute and the firm’s attributes. The advt.
message sent from the company will reach the consumer attributes.
Field 2:- it is related to the search and evaluation, undertaken by the
consumer, of the advertised product and also to verify if other
alternatives are variable.
Field 3:- it explains how the consumer actually buys the product.
Field 4:- it is related to the uses of the purchased items. It can also be
related to an output to receive feedback on sales results by
organisation.

60. The Nicosia Model

61. Limitations:
• The flow is not completed and does not mention the various
factors internal to the consumer.
• The assumption about the consumer being involved in the
decision process with no predisposition about the various
brands is restricting.
• Overlapping between firm’s attributes and consumers
attributes.

62. The Engel – Kollat – Blackwell (EKB)
Model:
• This model talks of consumer behaviour as a decision
making process in the form of five steps (activities) and
other related variables which occur over a period of time.
• 5 steps involved in the decision process:
– Problem Recognition
– Information Search
– Alternative Evaluation
– Choice
– Outcome

63. • Other related Variables included in this
model:
– Information input
– Information processing
– Product – brand evaluation
– General motivating influences
– Internationalised environment influences

65. About the model
• The model has emphasised on the conscious decision making
process adopted by a consumer.
• The model is easy to understand and is flexible.
• This model recognises that a consumer may not go through all
the steps always. This is because in case of repeat purchases
the consumer may bypass some of the steps.
• One limitation, the inclusion of environmental variables and
general motivating influences but not specifying the effect of
these on the buyer behaviour.

66. Engel, Blackwell and Minirad (EBM)
Model:• It shares certain things with Howard-Sheth model.
• The core of the EBM model is a decision process which is
augmented with inputs from information processing and other
influencing factors.
• Four sections of the Model:
• Input
• Information Processing
• Decision process and
• Variables influencing decision process.

67. • The EBM Model when compared to the Howard-seth
model is more coherent and flexible than the latter.
• This model also includes human processes like
memory, information processing and considers both
the positive and negative purchase out comes.

70. Personality and Consumer Behavior
Module 3

71. Some Facts
• Mercedes Benz regained its market leadership
in luxury cars in India in July, powered mainly
by the demand for its ‘Dream car’ models- the
two door SLK and CLS and AMG range of
models.
• Audi sold 705 units last month against
Mercedes tally of 810 units sold in July. BMW
India did not disclose its domestic sales.

72. • Hero MotorCorp, which exited all cricket
sponsorships including the Indian Premier
League earlier this year, is now betting on music
to connect with the youth. The top two-wheeler
maker will be presenting sponsor for Sunburn,
Asia’s biggest music festival, this year
• Apart from Hero, other sponsors include
Budweiser and Kingfisher- all known as liquor
brands- besides energy drink Red Bull and
PepsiCo’s lime drink 7 Up.

73. • South Korean handset maker Samsung Electronics
dethroned its Finnish counterpart Nokia as India’s
largest mobile phone maker in the last fiscal year by
cornering 31.5% market share compared with 27.2%
for the latter, Voice & Data survey revealed.
• When music channel network 9XMedia chose to
replace video jockeys with animated characters such
as Bheegi Billi, Betel Nuts and Bade Chote in some
shows, the idea was just to entertain viewers. Today,
these cartoon VJs account for more than one-fifth of
the network’s revenues, with many marketers including
Hindustan Unilever, Nestle, Coca-Cola and Dabur using
them to promote their products.

74. Examples
• Harley Davidson : “ We’re all created equal.
But after that, it’s up to you”
• Audi : “Never Follow”

75. What Is Personality
• The inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment.
• The emphasis in this definition is on inner
characteristics- those specific qualities,
attributes, traits, factors, and mannerisms that
distinguish one individual from other
individuals.

76. The Nature of Personailty
• Personality reflects individual differences
• Personality can change

77. Theories of Personality
• Freudian theory
– Unconscious needs or drives, are at the heart of human
motivation and personality
• Neo-Freudian personality theory
– Social relationships are fundamental to the formation and
development of personality
• Trait theory
– The orientation of trait theory is primarily quantitative or
empirical; it focuses on the measurement of personality in
terms of specific psychological characteristics, called traits. A
trait is defined as “ any distinguishing, relatively enduring way in
which one individual differs from another.” Trait theorists are
concerned with the construction of personality tests (or
inventories) that enable them to pinpoint individual differences
in terms of specific traits.

78. Freudian Theory
• Id
– Warehouse of primitive and impulsive drives- basic physiological
needs such as thirst, hunger, and sex- for which the individual
seeks immediate satisfaction without concern for the specific
means of satisfaction.
• Superego
– Individual’s internal expression of society’s moral and ethical
codes of conduct. The superego’s role is to see that the individual
satisfies needs in a socially acceptable fashion.
• Ego
– Individual’s conscious control. It functions as an internal monitor
that attempts to balance the impulsive demands of the id and the
sociocultural constraints of the superego.

79. Freudian Theory and
“Product Personality”
• Researchers who apply Freud’s psychoanalytic
theory to the study of consumer personality
believe that human drives are largely
unconscious and that consumers are primarily
unaware of their true reasons for buying what
they buy.
• Consumer researchers using Freud’s personality
theory see consumer purchases and /or
consumption situations as a reflection and
extension of the consumer’s own personality.
• In other words, they consider the consumer’s

80. Snack Foods and Personality Traits
Potato Chips:
Ambitious, successful, high achiever, impatient
Nuts:
Easygoing, empathetic, understanding, calm, even tempered
Popcorn:
Takes charge, modest, self-confident but not a show-off

81. Neo-Freudian Personality Theory
• Neo-Freudians believed that social relationships are
fundamental to the formation and development of Personality.
• We seek goals to overcome feelings of inferiority
• We continually attempt to establish relationships with others to
reduce tensions
• Karen Horney was interested in child-parent relationships and
the individual’s desires to conquer feelings of anxiety. Proposed
three personality groups
– Compliant move toward others, they desire to be
loved, wanted, and appreciated
– Aggressive refers to individuals being an extrovert
and getting noticed in all what he does
– Detached move away from others. They desire
independence, self-reliance, self-sufficiency, and
individualism or freedom from obligations)

82. Trait Theory
• Personality theory with a focus on
psychological characteristics
• Trait - any distinguishing, relatively enduring
way in which one individual differs from
another
• Personality is linked to how consumers make
their choices or to consumption of a broad
product category - not a specific brand. For
example, there is more likely to be a
relationship between a personality trait and
whether or not an individual owns an SUV

83. • Selected single-trait personality tests (which
measure just one trait, such as self-
confidence) are often developed specifically
for use in consumer behaviour studies. These
tailor-made personality tests measure such
traits as consumer innovativeness (how
receptive a person is to new experiences),
consumer materialism ( the degree of the
consumer’s attachment to “worldly
possessions”), and consumer ethnocentrism
(the consumer’s likelihood to accept or reject
foreign-made products)

84. Consumer innovativeness and related
personality traits
• Consumer
Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation
level
• Variety-novelty seeking
• The degree to which
consumers are
receptive to new
products, new services,
or new practices
Consumer Innovators
And Noninnovators

85. A “General” Consumer Innovativeness
Scale
• I would rather stick to a brand I usually buy
than try something I am not very sure of
• When I go to a restaurant, I feel it is safer to
order dishes I am familiar with.
• If I like a brand, I rarely switch from it just to
try something different
• I enjoy taking chances in buying unfamiliar
brands just to get some variety in my
purchase.
• When I see a new brand on the shelf, I’m not

86. • Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation
level
• Variety-novelty seeking
• A personality trait that
reflects the degree of
rigidity (versus openness)
a person displays toward
the unfamiliar and toward
information that is
contrary to his or her own
established beliefs
Consumer Innovators
And Noninnovators

87. • Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation level
• Variety-novelty seeking
• Ranges on a continuum from
inner-directedness to other-
directedness
• Inner-directedness
– rely on own inner values when
evaluating products
– Innovators
• Other-directedness
– look to others for guidance as to
what is appropriate or
inappropriate
– less likely to be innovators
Consumer Innovators
And Noninnovators

88. • Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation
level
• Variety-novelty seeking
• Consumers who avoid
appearing to conform to
expectations or
standards of others
Consumer Innovators
And Noninnovators

89. Sample Items from a Consumers’ Need
for Uniqueness Scale
1. I collect unusual products as a way of telling people I’m
different
2. When products or brands I like become extremely popular, I
lose interest in them
3. As far as I’m concerned, when it comes to the products I
buy and the situations in which I use them, custom and
rules are made to be broken
4. I have sometimes purchased unusual products or brands as
a way to create a more distinctive personal image
5. I avoid products or brands that have already been accepted
and purchased by the average consumer

90. • Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation level
• Variety-novelty seeking
• A personality trait that
measures the level or amount
of novelty or complexity that
individuals seek in their
personal experiences
• High OSL consumers are linked
with greater willingness to take
risks, to try new products, to
be innovative, to seek
purchase-related information,
and to accept new retail
facilities than low OSLs.
Consumer Innovators
And Noninnovators

91. • Innovativeness
• Dogmatism
• Social character
• Need for uniqueness
• Optimum stimulation
level
• Variety-novelty seeking
• Measures a consumer’s
degree of variety seeking
• Examples include:
– Exploratory Purchase
Behavior
– Use Innovativeness
– Vicarious Exploration
Consumer Innovators
And Noninnovators

92. Exploratory Purchase behaviour: Switching
brands to experience new, different, and
possibly better alternatives.
Vicarious Exploration: Securing information
about a new or different alternative and then
contemplating or even daydreaming about the
option.
Use Innovativeness: Using an already adopted
product in a new or novel way.

93. Cognitive Personality Factors
• Need for cognition (NC)
– A person’s craving for or enjoyment of thinking
– Individual with high NC more likely to be responsive to the part of an
ad that is rich in product-related information or description,
consumers who are relatively low in NC are more likely to be attracted
to the background or peripheral aspects of an ad, such as an attractive
model or well-known celebrity.
• Visualizers versus verbalizers
– A person’s preference for information presented visually or verbally.
Visualizers are consumers who prefer visual information.
– Verbalizers prefer written or verbal information over graphics and
images.

96. From Consumer Materialism to
Compulsive Consumption
• Consumer materialism
– Materialism, as a personality-like trait,
distinguishes between individuals who regard
possessions as essential to their identities and
their lives and those for whom possessions are
secondary.
• Fixated consumption behavior
– Somewhere between materialism and compulsion,
with respect to buying or possessing objects, is the
notion of being fixated with regard to consuming
or possessing.
– Fixated consumers do not keep their objects or
purchases of interest a secret; rather, they
frequently display them, and their involvement is

97. Sample Items from a Materialism Scale
• Success
– I admire people who own expensive homes, cars, and
clothes
– I like to own things that impress people
• Centrality
– I like a lot of luxury in my life
• Happiness
– My life would be better if I owned certain things I
don’t have
– It sometimes bothers me quite a bit that I can’t afford
to buy all the things I’d like

98. • Compulsive consumption behavior
– “Addicted” or “out-of-control” consumers
– Consumers who are compulsive have an addiction;
in some respects they are out of control, and their
actions may have damaging consequences to them
and to those around them. Examples of
compulsive consumption problems are
uncontrollable shopping, gambling, drug addiction,
alcoholism, and various food and eating disorders.
– To control or possibly eliminate such compulsive
problems generally requires some type of therapy
or clinical treatment.

99. Sample Items from Scales to measure
Compulsive Buying
1. When I have money, I cannot help but spend
part or the whole of it.
2. I am often impulsive in my buying behavior.
3. As soon as I enter a shopping center, I have an
irresistible urge to go into a shop to buy
something.
4. I have often bought a product that I did not
need, while knowing I had very little money
left.

100. Consumer Ethnocentrism
• Ethnocentric consumers feel it is wrong to purchase
foreign-made products because of the resulting
economic impact on the domestic economy, whereas
nonethnocentric consumers tend to evaluate foreign-
made products-ostensibly more objectively- for their
extrinsic characteristics (e.g., “how good are they?”).
A portion of the consumers would score low on an
ethnocentric scale are actually likely to be quite
receptive to products made in foreign countries.
• Marketers successfully target ethnocentric consumers
in any national market by stressing a nationalistic
theme in their promotional appeals (e.g., “Made in

101. • Honda, the Japanese automaker, in an
indirect appeal to ethnocentric Americans,
had advertised that its Accord wagon is
“Exported from America” to other markets

103. The Consumer Ethnocentrism Scale -
CETSCALE
• American people should always buy American-made
products instead of imports
• Only those products that are unavailable in the United
States should be imported
• Buy American – made products. Keep America working
• American products, first, last, and foremost
• Purchasing foreign-made products is un-American
• It is not right to purchase foreign products, because it
puts Americans out of jobs
• A real American should always buy American-made
products.

104. Brand Personality
• Personality-like traits associated with brands
• Examples
– Perdue (chickens) and freshness
– Nike and athlete
– BMW is performance driven
– Levi’s jeans are dependable and rugged

105. • Brand personification: It tries to recast consumers’
perception of the attributes of a product or service
into a human-like character.
– Example: Mr. Coffee, a popular brand of
automatic-drip coffee makers, unexpectedly found
in its focus group research that consumers were
referring to Mr. Coffee as if the product were a
person (e.g., “he makes good coffee” and “ he’s
got a lot of different models and prices”). After
careful consideration, the marketers decided to
explore the possibility of creating a brand
personification. Initial consumer research
indicated that Mr. Coffee was seen as being
“dependable,” “Friendly”, “efficient”, “intelligent”,
and “smart”.

107. A Brand Personality Framework

108.  Product Personality Issues
• Gender
– Often used for brand personalities
– Chinese consumers perceived coffee and
toothpaste to be masculine products, whereas
bath soap and shampoo were seen as feminine
products.
• Geography
– Example includes Philadelphia cream cheese and
Arizona iced tea
– By employing geography in the product’s name,
the product’s manufacturer creates a geographic
personality for the product

110. • Color
– Color combinations in packaging and products
denotes personality. For instance, Coca-Cola is
associated with red, which connotes excitement.
Yellow is associated with novelty, and black
frequently connotes sophistication. Blue is
associated with respect, authority and Green is
associated with secure, natural, relaxed
– The IBM Thinkpad has consistently used an all-
back case with a red button to house its very
successful line of laptops. Nike has used black,
white, and a touch of red for selected models of
its sports shoes. This colour combination seems
to imply advanced-performance sports shoes.
Many fast food restaurants use combination of
bright colours like red, yellow and blue for their
roadside signs and interior designs. It denotes fast

116. Financial Services Firms Often Feature Blue and
Green on Their Sites

117. Self and Self-Image
• Consumers have a variety of enduring images
of themselves
• These self-images, or perceptions of self, are
very closely associated with personality in that
individuals tend to buy products and services
and patronize retailers whose images or
personalities relate in some meaningful way to
their own self-images.

118. • One or multiple
selves
• Makeup of the self-
image
• Extended self
• Altering the self-
image
• A single consumer will act
differently in different
situations or with different
people
Issues Related to
Self and Self-Image

119. • One or multiple selves
• Makeup of the self -
image
• Extended self
• Altering the self- image
• Contains traits, skills, habits,
possessions, relationships and way
of behavior
• Developed through background,
experience ,and interaction with
others
• Consumers select products
congruent with this image
Issues Related to
Self and Self-Image

120. Different Self-Images
Actual Self-
Image
Ideal Self-Image
Ideal Social
Self-Image
Social Self-Image

121. • One or multiple
selves
• Makeup of the self-
image
• Extended self
• Altering the self-
image
• The interrelationship between
consumers’ self-images and their
possessions is an exciting topic.
Specifically, consumer’s posessions
can be seen to confirm or extend
their self-images. For instance,
acquiring a desired or sought-
after pair of “vintage” Levi jeans
might serve to expand a
teenager’s image of self. The
teenager might now see herself
as being more desirable and
more fashionable.
Issues Related to
Self and Self-Image

122. Sample Items from an Extended Self-
Survey
• My -------- holds a special place in my life
• My -------- is central to my identity
• I feel emotionally attached to my …………
• My ----------helps me narrow the gap between
what I am and try to be
• If my -------- was stolen from me, I would feel
as if part of me is missing
• I would be a different person without my ------
----

123. • One or multiple
selves
• Makeup of the self-
image
• Extended self
• Altering the self
• Sometimes consumers wish to
change themselves to become
a different or improved self.
Clothing, grooming aids or
cosmetics, and all kinds of
accessories ( such as
sunglasses, jewelry, tattoos, or
even colored contact lenses)
offer consumers the
opportunity to modify their
appearances (to create a
“makeover”) and thereby to
alter their “selves.”
Issues Related to
Self and Self-Image

124. A CUSTOMER IS THE MOST IMPORTANT VISITOR
ON OUR PREMISES,
HE IS NOT DEPENDENT ON US,
WE ARE DEPENDENT ON HIM.
HE IS NOT AN INTERRUPTION ON OUR WORK, HE IS
THE PURPOSE OF IT.
HE IS NOT AN OUTSIDER ON OUR BUSINESS
HE IS A PART OF IT.
WE ARE NOT DOING HIM A FAVOUR BY SERVING
HIM,
HE IS DOING US A FAVOUR BY GIVING US THE
OPPORTUNITY TO DO SO.
MAHATMA GANDHI

125. • Consumer behaviour refers to the actions of consumers in
the market place& underlying motives for those actions.
• Marketers need to understand why customer buy a
particular goods & services by doing so they will be able
to determine-:
• Which products are needed in the market place,
• Which are obsolete,&
• How best to present the goods to the consumers. product
• It attempts to understand the buyer decision making
process, both individually and in groups.
• It studies characteristics of individual consumers such as
demographics and behavioural variables in an attempt to
understand people's wants.
• It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society
in general.

126. • Consumer behaviour refers to the behaviour that
consumer display in searching for, purchasing,
using, evaluating & disposing of products &
services that they expect will satisfy their needs.
• Study of consumer behaviour is the study of how
individuals make decisions to spend their
available resources like time, money & effort on
consumption related items.
• It is the study of the processes involved when
individuals or groups select, purchase, use or
dispose of products, services, ideas, concepts or
experiences to satisfy consumer needs & desires.

127. Consumer purchases are influenced
strongly by or there are four factors.
• Cultural Factor
• Social Factor
• Personal Factor
• Psychological Factor.

128. Cultural Factor
• Cultural factor divided into three sub factors (I) Culture (II) Sub Culture
(III) Social Class
– Culture:-
Culture is the most fundamental determinant of a person’s wants and
behavior. Whereas lower creatures are governed by instinct, human
behavior is largely learned. The child growing up in a society leans a
basic set of values, perceptions, preferences and behaviors through a
process of socialization involving the family and other key institution
• The set of basic values perceptions, wants, and behaviours learned
by a member of society from family and other important
institutions. Culture is the most basic cause of a person’s wants and
behaviour. Every group or society has a culture, and cultural
influences on buying behaviour may vary greatly from country to
country.

129. – Sub Culture :-
• A group of people with shared value systems based on common life
experiences and situations.
• Each culture contains smaller sub cultures a group of people with
shared value system based on common life experiences and situations.
Sub culture includes nationalities, religions, racial group and
geographic regions. Many sub culture make up important market
segments and marketers often design products.
– Social Class:-
• Almost every society has some form of social structure, social classes
are society’s relatively permanent and ordered divisions whose
members share similar values, interests and behaviour.
• Social Classes have several characteristics. First, Person with in each
social class tend to behave more alike than persons from two different
social classes. Second, persons are perceived as occupying inferior or
superior positions according to their social class. Third, a person’s
social class is indicated by a number of variables, such as occupation,
income, wealth, education , and value orientation, rather than by any
single variable , fourth, individuals are able to move from one social
class to another up or down during their lifetime.

130. Social Factors
• A consumer’s behaviour also is influenced by social factors, such as the (I)
Groups (II) Family (III) Roles and status
– Groups :-
• Two or more people who interact to accomplish individual or
mutual goals.
• A person’s behaviour is influenced by many small groups. Groups
that have a direct influence and to which a person belongs are
called membership groups.
• Some are primary groups includes family, friends, neighbours and
coworkers. Some are secondary groups, which are more formal and
have less regular interaction. These includes organizations like
religious groups, professional association and trade unions.

131. Family:-
Family members can strongly influence buyer behaviour. The family is the
most important consumer buying organization society and it has been
researched extensively. Marketers are interested in the roles, and
influence of the husband, wife and children on the purchase of different
products and services.
• Members of the buyer’s family can exercise a strong influence on the
buyer’s behavior. we can distinguish between two families in the buyer’s
life . The family of orientation consists of one’s parents. From parents a
persons acquires an orientation towards religious, politics, and economics
and a sense of personal ambitions, self –worth, and love. Even if the buyer
no longer interacts very much with his or her parents, the parents influence
on the unconscious behavior of the buyer can be significant. In countries
where parents continue to live with their children, their influence can be
substantial.

132. • In case of expensive products and services, husband and wives engage in
more joint decision making. The market needs to determine which member
normally has the greater influence in the purchase of a particular products
or services. either the husband or the wife , or they have equal influence .
The following products and services fall under such:
• Husband – dominant: life insurance, automobiles, television
Wife – dominant: washing machines, carpeting, non –living – room
furniture, kitchenware
Equal: Living – room furniture, vacation, Housing, outside entertainment.

133. – Roles and Status :-
• A person belongs to many groups, family, clubs,
organizations.
• The person’s position in each group can be defined
in terms of both role and status.
• For example. M & “X” plays the role of father, in
his family he plays the role of husband, in his
company, he plays the role of manager, etc. A Role
consists of the activities people are expected to
perform according to the persons around them.

134. Personal Factors
• It includes
• I) Age and life cycle stage (II) Occupation (III) Economic situation
(IV) Life Style (V) Personality and self concept.
– Age and Life cycle Stage:-
• People changes the goods and services they buy over their lifetimes. Tastes in
food, clothes, furniture, and recreation are often age related. Buying is also
shaped by the stage of the family life cycle.
– Occupation :-
• A person’s occupation affects the goods and services bought. Blue collar
workers tend to buy more rugged work clothes, whereas white-collar workers
buy more business suits. A Co. can even specialize in making products needed
by a given occupational group. Thus, computer software companies will design
different products for brand managers, accountants, engineers, lawyers, and
doctors.

135. – Economic situation :-
• A person’s economic situation will affect product choice
– Life Style :-
• Life Style is a person’s Pattern of living, understanding these
forces involves measuring consumer’s major AIO
dimensions.
• i.e. activities (Work, hobbies, shopping, support etc) interest
(Food, fashion, family recreation) and opinions (about
themselves, Business, Products)
– Personality and Self concept :-
• Each person’s distinct personality influence his or her buying
behaviour. Personality refers to the unique psychological
characteristics that lead to relatively consistent and lasting
responses to one’s own environment.

136. Psychological Factors
• It includes these Factors.
• I) Motivation (II) Perception (III) Learning (IV) Beliefs
and attitudes
• Motivation :-
– Motive (drive) a need that is sufficiently pressing to direct
the person to seek satisfaction of the need
• Perception :-
– The process by which people select, Organize, and interpret
information to form a meaningful picture of the world.

138. CONSUMER INVOLVEMENT AND
COMPLEX DECISION MAKING
HIGH LEVEL OF
INVOLVEMENT
EXTENSIVE
INFORMATION
PROCESSING
LITTLE OR NO
INFORMATION
PROCESSING
BRAND LOYALTY
CONSUMER
DECISION
MAKING